Indeed, football betting is a little like stock market shares where YOU can select profitable investments and traders can Predict with a deal of accuracy whether prices are more likely to rise or fall.
Whereas in stock markets prices sometimes rise or fall unexpectedly, unecpected results also happen in soccer as every fan will have observed. I received tutoring on financial and quantitative analysis of stock markets at uni but of course, soccer betting is not on the syllabus. However, the more I study betting and its statistics, the more parallels I can draw with stock market. The secret of long-term financial success in the stock market is not always about buying the right shares or options. Obviously, a good selection of instruments naturally influences the profit margin in a positive manner but, long-term financial success is not guaranteed if the portfolio is wrongly structured. The same applies to soccer betting. A professional stock broker would not dream of investing all of his clients’ money in just 1 share or option. Indices such as TecDAX, DAX, MDAX and MDAX all include at least 40 companies in their portfolios. The DAX 100 for example contains 100 companies.
Why, therefore, does the stock broker look to invest in a wide range of markets? The answer is clear: This is done to reduce or spread the risk if one or another share price develops in the wrong direction. And, even in the very unlikely event that the whole stock market collapses, the indices will never totally drop to 0.
Translated into gambling, these principles indicate that you should never put all your money on one individual bet, however ‘sure’ it appears. You must always bet on a portfolio of events in order to spread the risk/investment for long-term returns.
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