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Sports betting, like any investment, carries risks and rewards. The parallels between betting on sports and playing the stock market are many. In fact, I would argue that they are exactly the same for all intents and purposes. Placing a bet on a team and hoping for a win is no different than buying a particular stock and hoping for a rise in price. There are few differences between sportsbooks and brokerage firms. Both are middlemen who charge you a fee for their services. Both the sports bettor and the stock player are after a return on their investment (profit). If a person buys a stock and it falls instead of rises in price, he loses money, or has a negative return on investment. If a sports bettor bets a team to win and that team loses, he also has a negative return on investment. Calculating a return on investment is simple. Divide any profit by the amount risked to get it. If you bet $100 on the Colts to cover -3 at -110 versus the Patriots and they do, you have a ROI of 91% for that particular bet: $91/$100 = 91% But where ROI really can help you is over the course of many bets. Let's say you made 50 bets at -110, risking $100 each time, over the course of the NFL season. You won 30 bets and lost 20. Your total investment for the season would be $5000: $100*50 = $5000 Your total profit would be $730: ($91*30) - $2000 = $730 Where $2000 are your 20 losses. This would give you a return on investment of 14.6%: $730/$5000 = 14.6% Applying ROI to different aspects of your sports betting can reveal many things. It can reveal how good of a handicapper you are and where your strengths and weaknesses lie. It's most useful, I think, as it relates to money management and how favorites and underdogs affect your bottom line.


Risking $100 each time, if you make 10 bets on -150 favorites and win seven of them and lose the other three, you have a profit of $166.69 and a ROI of 16.67%. Not too shabby. But if you shopped around and were able to get those same bets at -145, your ROI would increase to 18.30%. As a tool for the sport bettor, ROI can't be underestimated. Try applying to individual sports or various timeframes. It can reveal a lot and help you make better decisions regarding bets and bankroll management in the future.

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Article Source: http://EzineArticles.com/?expert=Michael_Kindt

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