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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 services outlet, 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.
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.
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. The potential effect of negative sequences is carefully calculated
and prepared for. With this essential safeguard in place, staking
is optimised to ensure the maximisation of profits.
Here
are a few excerpts from the training manual of one of
the world's top fund management companies, 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 before commencing, and,
provided we hit a sufficient overall strike rate for the price
range we are targeting, our investment will flourish. 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 after
every 100 bets and reset the value of the stake based on the
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.
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
Steve
Jones
Professional
Betting Advice and Strategy
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