Wednesday, July 05, 2006

Make MONEY everyday with NO RISK involved - SPORTS HANDICAPPING is a safer investment then WALL STREET.

Sports Investing is the safest and most profitable investment out there period. When comparing investments safety is defined in terms of risk vs. reward. Based off of that assumption let’s breakdown the average investors portfolio. An average investor usually keeps about 10% of their portfolio in I-bonds. This is a play on inflation. It usually returns a couple % above the current inflation index. At the time of this article it’s yielding 6.75%. Not a bad return considering that there is relatively no risk involved is this investment. Then 40% to 60% of your money goes into mutual funds spread out over different sectors in order to give your portfolio complete exposure to the market. Spreading out your mutual funds diversifies your portfolio. This in turn, will protect your investment supposedly. I say supposedly because with mutual funds nothing is truly safe. You’re susceptible to external sources that can really affect your returns. Never the less let’s be the optimists that I know we all are and look at the glass half full. On average your return should be somewhere around 10% to 15%. For our purpose we’ll work with a 15% return. Now we covered about 70% of our portfolio so far. The final 30% will be broken down as such 20% spread over tax free municipal bonds and other private corporate bonds. These help to lower the risk in your portfolio but give back very mediocre returns. You’re looking at returns between 4% and 6%. Finally the last 10% is allocated for some risk in order to beef up returns. It can be placed anywhere from individual stocks that you or your manager like. To commodities like oil or precious metals that in the right market can really sore. In this final 10% you carry a lot of risk but this is also where you have the opportunity to get your best returns. This being said let’s remain on the path of the optimist and give our investor average Joe an excellent return of 30%. Now that average Joe has his portfolio let’s implement a simple weighted average formula. Using the numbers we previously presented to you, our formula goes as follows: (0.1 * 0.0675) + (0.6 * 0.15) + (0.2 * 0.06) + (0.1 * 0.3) = 0.138 or 13.8% ROI. So as you can see average Joe is taking a considerable amount of risk on Wall Street for a measly return of 13.8% a year.

When you’re a sports handicapper you make your money placing bets. With this being said, your sports gambling IQ is usually a lot higher then the average gambler. Remember our initial statement was sports handicapping is a safer investment then Wall Street not sports gambling there is a difference. Just to simplify things I’m going to break it down to one basic system used by most true sport handicappers; OFFLINE PLAYS. An offline play is where a sports handicapper uses the discrepancies in lines between different sports books to his advantage. Whenever they find one of these discrepancies the difference between the sports book with the highest plus and the one with the lowest minus each penny is equivalent to 1% return on their money. I know what most of the people who are not sports handicappers are thinking. How often can something like this occur and what kind of risk is involved. Well plays like this occur every single day. Actually you can usually find anywhere from 1 penny to 30 cents every day. That’s equivalent to 1% to 30% return on investment every day. As opposed to 13.8% a year on Wall Street, averaged over 5 to 10 years. I don’t know about you but I’m taking 30% a day over 13.8% a year every time. Remember also this doesn’t even take into account compounding interest; which over a five year period turns a 30% a day return into an unimaginable return on investment. Now that the reward part of this discussion is no longer a question what about the risk factor. Earlier we were discussing how on Wall Street you diversify in order to manage risk. Well with a play like this there is absolutely no risk involved. You either break even or you earn your percentage return, and if you want to guarantee yourself a return every time you just have to increase your wager on the side of the favorite a little bit. This will allow you to earn half that percentage amount every time.

This article should help you understand how to make money everyday with no risk involved. But if anyone has any questions please go to my website at http://www.powerpositionbetting.com/ where I cover this topic in greater detail.

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1 Comments:

At 8:58 PM, Anonymous Anonymous said...

This concept is the best I have seen in the world of sports betting. I have lost hundreds of thousands of dollars doing exactly what you have told me not to do. I look forward to your expertise and I am 110% confident I not only will win in the future but will also recommend your website and concept to all my friends.

 

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