Thursday, October 1st, 2020

Why You Should Use Portfolio Betting To Spread The Risk

December 12, 2012 by  
Filed under Money Management, Recent Articles

As far as betting is concerned, it’s the performance over the long-term

(however you define that it’s always longer than one week!) that’s more important than the inevitable short-term losses.

Bet you’ve heard that before – but it’s so true.

Punters’ selection methods will always show winning and losing periods on a week-by-week basis.

Consequently, if a system with a low return on investment (ROI) goes through a lean spell then a low morale is inevitable.

That’s because there’s a high loss of profits. Or, even worse, a high loss of investment capital.

And a major disadvantage of the low ROI is, of course, that there is little margin for error in making your selections.

So the best way to spread the risk (and help maintain morale) is to develop a Betting Portfolio, or join a profitable tipster service that already operates a diverse Betting Portfolio, proven to make long-term profits

What Is A Betting Portfolio?

It’s a collection of tried and tested selection methods and strategies that a punter is  confident are capable of delivering consistent profits over time. Using a selection of systems, betting strategies and methods helps reduce overall losing periods, and helps spread the losses.

Why A Portfolio?

Consider this simple formula:

Diversification + Mixed Economy = Spread Risks

In other words,: don’t put all your eggs in one basket!

Astute grain farmers will also rear some beef cattle, perhaps a few pedigree sheep for stud, maybe some pigs, almost definitely some poultry.

One disaster might strike, perhaps. But it’s unlikely their farm will be struck by a depressed wheat market , foot-and-mouth, AND swine fever all in the same season!

Diversification has, therefore, spread the risk of overall financial failure.

Similarly, spread your betting risks. Don’t rely simply on, say, only one win-selection method.

One system loses; but another wins. Peaks and troughs are evened out.

Stability is paramount. Horses from successful stables give stable profits and a more stable punter!

What Will Be In Your Betting Portfolio?

A Successful Portfolio Betting includes a mixture of systems, and a variety of strategies spread across a range of investment vehicles such as:

  • Horse race betting
  • Greyhound betting
  • Sports betting

Selection Strategies can include any or all of:

  • Backing selections to win
  • Backing selections to place
  • Backing selections each way
  • Laying selections to not win
  • Laying selections to not place
  • Trading
  • Matched betting
  • Tipster Services

Your betting mode could be flexible and move between Bet’n’Forget versus Watch’n’Wait. That, of course, depends on your time available, patience level and preferences.

Although it has to be said … it pays to follow seasonal horse racing trends. Most professional punters focus on jumps during winter but stick with flat turf racing during summer. And  lets not forget All-weather could fit into your portfolio, too.

Portfolio Money Management

Spreading the risks and spreading outlays suggests that money management could be diversified across a selection of different staking strategies.

In fact, it’s a good idea to use separate betting banks for backing, laying, trading and so on.

This makes auditing easier. When one bank is down another is up (morale again!)

And you can see at-a-glance underperforming methods that might need to be dropped from the portfolio.

Risk and Return

In structuring your Portfolio take into account your Comfort Zone and the nexus between Risk and Return.

Professionals or syndicates often work on a 2 to 3% return on investment.

Profits from systems can be quite small. So turnover comes into contention.

 Low returns + high turnover = Improved ROI

So although an average return might be, say, 0.50-1.00 a race, if the monthly turnover is one or two thousand then the monthly ROI is quite healthy

A mixture of systems means a variety of action and returns.

  • You might have few selections at a time from one system but returns are quite high.
  • Whereas another system might give you selections for most of the races on a card but returns are quite low. Perhaps that’s because it involves place betting confined to the first three favourites in the market.

Spread your risks, spread your profits, diversify and prosper.

Developing and running your Betting Portfolio will help smooth the way on the journey towards meeting some of your financial goals.

This is exactly the approach that professional punters take and therefore reap the rewards accordingly. However, it should be noted that it does take considerable time, effort and money to identify, test and then put together a profitable Betting Portfolio.

Fortunately, there is a  much simpler option available to you –  in the form of a professional betting approach which utilises a tried and tested portfolio of systems, and profitable Trainer Trends.

The best part is… you don’t have to do anything except follow simple advice (Tips sent to you by e-mail every day)

Even better, unlike the majority of online betting tipsters this profitable advice is very affordable – at less than 25 pence a day.

Yes you read that correct. For less than the price of a daily newspaper you can join the false favourites members club today!


Jonathan Burgess

Jonathan Burgess is an official Betfair Accredited Trainer and racing columnist for various respected betting industry publications such as: Betting School, The Daily Punt and Betfair’s Education site. He also runs the Profitable – False Favourites Betting Tips Club Which cost just 24 pence a day. You can also connect with him on Facebook and Twitter


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Comments

One Response to “Why You Should Use Portfolio Betting To Spread The Risk”
  1. Jonathan says:

    Thank you – feel free to share the false favourites blog with your myspace group.

    Cheers Jon

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