If you are interested in the world of finance, you should certainly explore the so-called financial betting. Many bookmakers online will allow you to place wagers on the movements of stocks, currencies, indices and other financial markets.
If that sounds interesting, you should check the following four tips for beginners in financial betting.
Look for Positive Expected Value
As in any other investment, you should be looking to place your money on outcomes and prices that have a positive expected value in the long run. A good starting point is the price that the betting site offers you.
It can be converted into an implied probability value with a simple formula. Once you have the percentages, the next step would be to recognize outcomes with a higher probability than the price suggests.
That’s obviously easier said than done but it’s the only way to create an advantage against the bookmakers and make money in the long run.
Proper Bankroll Management and Staking Plan Are Required
The next tip is related to bankroll management and staking plans. They are essential for even the most successful bettor. You are working with probabilities here, there is nothing certain, so the short-term variance could be devastating.
Even if you have a working strategy, you will often encounter long losing streaks. If you haven’t provided your system a long-enough runway to work, you will eventually go bankrupt.
There are no fixed rules on bankroll management in financial betting, as there are many factors to consider. For example, if you are chasing markets with a high return but a low probability of success, you should stick to smaller wagers, like 1% of your bankroll. If you are mostly betting on events with a high probability, you could expand that to 3% or even more.
The other big factor in determining the size of your wagers is related to the expected value. The higher it is, the more you should invest.
There are many ways to approach this aspect of financial betting, so take the time to find a strategy that works well for your needs.
Use More Than One Betting Site
A lot of people prefer to stick to only one bookmaker because it’s easy and convenient. If you are in this group, you know that you are leaving money on the table. Joining more than one betting site that offers financials will consistently bring you higher odds.
On top of that, many of the bookmakers have bonuses and promotions that provide an extra boost to your bankroll. If you have access to more of them, you will have more opportunities to make money on the side.
Keep Records and Track Your Results
It’s essential to track your results and analyze them. Keep a record of all of your wagers, stake size, price and outcome. You can use the bookmaker’s betting history to extract the information. Make sure to go over it every once in a while, and look for ways to improve.
You will find that you are better in certain markets, so focus on what you do best and leave the rest aside. Most people that make money from financial betting are not a Jack of all trades, they are exceptional in one area instead.
The rules in this article won’t make you an instant winner in financial betting but they provide a solid base. Make sure to read them carefully and apply them to your strategy. If you are ready to dig deeper, you can find more about financial betting here.