Getting an Edge in Sports Betting
If we transform sports betting into a more business-like and professional endeavor, there's a greater likelihood that individuals can make the case for sports betting being an investment.
The Sports Marketplace being an Asset Class
Just how can we make the jump from gambling to investing? Dealing with a group of analysts, economists, and Wall Street professionals - we often toss the phrase "sports investing" around. But what makes something an "asset class?"
A property class is usually described being an investment with a marketplace - that has an inherent return. The sports betting world clearly features a marketplace - but how about a source of returns?
As an example, investors earn interest on bonds as a swap for lending money. Stockholders earn long-term returns by having a portion of a company. Some economists claim that "sports investors" have an integral inherent return in the form of "risk transfer." That's, sports investors can earn returns by helping provide liquidity and transferring risk amongst other sports marketplace participants (such as the betting public and sportsbooks).
Sports Investing Indicators
We can take this investing analogy a step further by studying the sports betting "marketplace." Exactly like more traditional assets such as for instance stocks and bonds derive from price, dividend yield, and interest rates - the sports marketplace "price" is founded on point spreads or money line odds. These lines and odds change as time passes, just like stock prices rise and fall.
To help expand our goal of earning on 사설토토 sports gambling an even more business-like endeavor, and to study the sports marketplace further, we collect several additional indicators. Particularly, we collect public "betting percentages" to study "money flows" and sports marketplace activity. In addition, just as the financial headlines shout, "Stocks rally on heavy volume," we also track the amount of betting activity in the sports gambling market.
Sports Marketplace Participants
Earlier, we discussed "risk transfer" and the sports marketplace participants. In the sports betting world, the sportsbooks serve an identical purpose as the investing world's brokers and market-makers. Additionally they sometimes act in manner much like institutional investors.
In the investing world, everyone is known as the "small investor." Similarly, everyone often makes small bets in the sports marketplace. The small bettor often bets using their heart, roots for a common teams, and has certain tendencies which can be exploited by other market participants.
"Sports investors" are participants who undertake an identical role as a market-maker or institutional investor. Sports investors work with a business-like way of make money from sports betting. In effect, they undertake a risk transfer role and are able to capture the inherent returns of the sports betting industry.
Contrarian Methods
Just how can we capture the inherent returns of the sports market? One method is to utilize a contrarian approach and bet against the public to capture value. This really is one reason why we collect and study "betting percentages" from several major online sports books. Studying this data allows us to have the pulse of the market action - and carve out the performance of the "general public."
This, coupled with point spread movement, and the "volume" of betting activity will give us a concept of what various participants are doing. Our research indicates that the public, or "small bettors" - typically underperform in the sports betting industry. This, subsequently, allows us to systematically capture value by utilizing sports investing methods. Our goal is to apply a systematic and academic way of the sports betting industry.
