Sports Wagering versus Stock Market Investing
Before we compare sports betting and stock market investing, let’s identify the difference between the “traditional gambler” and the “non-traditional gambler.”
Whether its sports betting, the stock market, poker or any other type of “gamble”, the traditional gambler will almost always lose in the long term because they wager without “edge” and without proper money management. These traditional bettors are usually degenerates, problem gamblers or “action junkies” making wagers on a daily basis without merit.
A non-traditional gambler on the other hand approaches sports betting as an “investor” and utilizes proper money management and will only wager when an “edge” is present. That is why non-traditional gamblers are able to achieve long term success and turn sports gambling into sports investing.
Sports-betting attracts the traditional gambler because of its simplistic nature. The stock market on the other hand doesn’t appeal to the traditional gambler because of its complex structure.
We know that investors are long term winners and gamblers are usually short term losers… and that is why many people consider sports betting as a “high risk gamble” and the stock market as “low risk investing”. But if you compare sports betting and the stock market from an investor’s perspective you’ll see they’re very similar in nature. In both cases you, your broker, or advisor identifies a situation that requires a financial stake in anticipation of realizing a profit. In the stock market, it’s called a “company”… in the sports market; it’s called a “team”.