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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.

2. 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.
To learn more about how a Precision Plays account can help you succeed at sports betting,
please visit [http://precisionplays.com]
Article Source:
http://EzineArticles.com/?expert=Michael_Kindt
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