Taking the Gamble out of Gambling
strategy based on proven results it is best to try to keep”*emotions” under control
as fluctuations will invariably level over time providing the strategy is based on
sound information and money management).
*Note – Another reason that some people fail to profit from quality strategies is that they
retain a gambler’s mentality and allow emotion to unduly influence their decisions.
Example of an investing approach to gambling
Firstly, to give you a better idea of an investment type approach to gambling let’s say
you have obtained a database of all the race results for a particular race track for the last
three or four years. Let’s say two thousand races in all. You do some research with the
results and find that in seventy-five percent of the races (that’s seventy-five races out of
each one hundred) horse number one has run a place. Now that sounds like a profitable
piece of information to have. Would you go out on the basis of this information and start
placing place bets on number one in each race at that track? I hope not. While the
information sounds promising there is still an important piece of the puzzle missing. The
average return price for each placed horse. What if the average return price is only $1.28?
Let’s take a look.
100 races = $100 out
75 returns at $1.28 = $96 returned
Total average return on each 100 races = a loss of $4 or 4%.
Not exactly what we are looking for. However what would happen if the average return
100 races = $100 out
75 returns at $1.50 = $112.5
Total average return on each 100 races = a profit of $12.50 OR 12.5%.
So our profit on turnover here is 12.5% which would be a great situation to have and
certainly be an investment type situation if the results were proven over a significant
number of races and we used proper money management skills to grow our starting bank
and increase the amount invested inline with the growing bank and also use adequate risk
Know which form of gambling is for you
There are a myriad of different forms of gambling that you can choose from to throw
your hard earned money into if you are the typical “hope for lady luck” style of gambler.
Of these some are virtually impossible to make any money from because the odds favor
the house (casino, club, bar, or venue) so much and there is no way of influencing or
predicting the outcome. There are some forms of gambling however where anyone who
studies and applies logical and proven strategies can bring relatively consistent returns
similar to traditional investment. The games where you have little chance of making
consistent returns include: