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In
the current economic climate there are increasingly more reasons
why betting, when conducted professionally, can provide a very
attractive alternative to traditional forms of financial
investment.
Basic
investment philosophy
The
setting up of a betting bank is crucial to the success of your
investment. That bank is your investment, just as it would
be if you had a portfolio of stocks and shares, and my job is to
manage it and make it grow. Your investment is geared to the
buying of racehorses' chances rather than gold or copper but it
works in the same way.
My
operation is geared to progressive growth rather than short-term
jackpot-hunting. If, at the end of an investment period, the growth
of your investment is greater than you could have achieved with a
financial package from a high-street bank, building society or
financial service, then the exercise will have been
worthwhile. Historical performance has shown that far greater
rewards than these traditional methods are possible on a
consistent basis.
The
main emphasis of my risk management strategy is to safeguard your
investment. I will not allow it to be exposed to any greater risk
than is necessary. I never ask for more than 2% of the current balance to be risked at any
one time and I believe this safeguard to be essential.
Trading in
the chances of racehorses can produce
exciting results when handled correctly, as can be seen from the
fact that I managed a betting fund which provided a growth of 1,183%
over a seven year period.
Here
are a few excerpts from the training manual of a top fund management
company, clearly showing how the principles of traditional investment
strategy can be successfully applied to betting:
"...if the risks are either too
high or too low, then bet sizes and/or bankroll can be adjusted to
produce the desired amount of risk."
"...profits
and losses do not likely alternate with smooth regularity; they
appear, typically, as winning and losing streaks. When the entire
investor-manager team realizes this as natural, it is more likely to
stay the course during drawdowns, and also to stay appropriately
modest during winning streaks."
"...in actual practice, the most important psychological
consideration is ability to stick to the system. To achieve this, it
is important (1) to fully understand the system rules, (2) to know how
the system behaves and (3) to have clear and supportive agreements
between all parties that support sticking to the system."
By
correctly following the simple rules of my investment plan you will give
yourself every opportunity to reap the rewards it can provide.
Notes
on sequences
Sequences
are inevitable and can be both positive and negative. They happen
whether we like it or not and are unavoidable no matter what we
do. It would be nice if our winners could be spread evenly
throughout the year but that will never happen. That's why I
advise preparing an investment bank of 50 points before
commencing, and, provided we hit a sufficient overall strike rate
for the price range we are targeting, our investment will
flourish. Equally important is the fact that you will never stake
more than 2% of your current balance on any one bet.
Detailed
discussion on the topic of sequences can be found in my article Don't
Go Broke
(opens in new window).
Notes
on re-investment of profits
With
any successful financial plan, re-investment of profits
is an important factor in securing optimum long-term performance.
With this in mind, my suggestions regarding future management of the
initial investment are as follows:
Once
the initial bank doubles in value, take out the original capital
and start the investment plan again, with a new bank of the same
initial value as the first, but which is made up purely from
accrued profits. You need only do this once as all future
investment from this point will be funded by accrued profits.
Having
achieved that first step, review your investment balance on an
annual basis, and, before commencing
business for a new calendar year, reset the value of the 1 point
stake to 2% of the previous year's closing balance. By doing this
progressively your stakes will increase pro-rata to profit,
thus securing optimum long-term benefits without increasing the
relative risk factor attached to your investment. (Note: Your
investment can start at any time but your annual adjustments
should be made at the end of each calendar year).
Investors
should take the time to read and absorb the following
articles in order to gain a better understanding of how the
investment plan operates (each link opens in new window):
Don't
Go Broke
How Many
Winners?
Getting
Value
Psychology
of Betting
Pearls
of Wisdom
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