Sports Trading is not easy and it’s not for everyone. The nuances are as difficult as the Stock Market and with even fewer experts like myself doing this full time, there is very little advice to follow and even less information that gives you the little details you need to actually take home profits.
Even sports traders who can bring home wins the 52.38% ATS rate needed to overcome the -110 juice at most sportsbooks and because they lack the tools needed, often see their bankrolls dwindle due to a variety of mistakes.
So why is that? What are the mistakes that these traders are making?
Today we discuss.
It’s not enough to make a few smart investments — you also have to have solid money management principles and the discipline it takes to stay the course and trust your systems. So without further ado, I present the 4 mistakes that most Sports Traders make (and how to correct them)
1) Changing Unit Allocation Mid Stream
Money management and proper bankroll allocation may be the most important discipline needed to be a successful sports investor, but I am always blown away by how many investors can’t seem to keep it together. Some start off fine, get a few losses under their belt and then throw everything they planned to the side.
Others start to peel off some wins and think they could have made more if their unit size was bigger.
My method encourages all of our subscribers to employ a flat-investment system in which they wager the exact unit allocation that we recommend, based on predetermined stop losses for each system.
This holds true for all investing: risking too much in a single bet and radically deviating from the suggested unit size is one of the main reasons inexperienced investors will go broke. Stay disciplined!
2) Going “all in” on recent trends or information they heard on TV
We have spoken in the past about the keys to winning in the Sports Trading world. Patience is key, but staying the course that you plotted is a big part of that.
So, if you did the work to find back tested historical data and decided you were going to follow those patterns, you are only doing yourself a disservice when you can’t keep following a straight line.
Large sample sizes that are built from the back tested system approach allow you to more accurately observe advantages that you may hold over the sportsbooks, yet it never ceases to amaze how much stock sports traders will place in the performance of a team over the past five games.
If you really wanted to gamble, you should just flip a coin. Don’t know what I am talking about? Here is a great example.
A team may have won their past five games and an inexperienced sports trader will automatically assume that means they are on a hot-streak that will continue for the foreseeable future.
But we know different; the real truth is, by analyzing our historical data we know that teams are actually undervalued coming off a loss.
That is why we often teach the simple saying: buy on bad news and sell on good, especially when there is a point spread or an over/under involved.
3) Needing more action
Our VIP ALERTS customers get between 10 and 15 plays in a week and for some, this is not enough action. This can result in people who signed up to have a fun investment method, but end up placing 15 bets every single night.
By not focusing on our top rated plays that come with the VIP Service, you will likely see your winning percentage wane which makes it more likely that the juice ( the commission that the sports book takes) will slowly chip away at your bankroll. THIS is a HUGE reason why you will lose, if you are a Sports Trader.
4) Not shopping for the Best Line
As part of our training, I always tell my followers to have accounts in different sports books, if possible. This gives you the ability to be able to shop for the best lines possible and give yourself another huge advantage over other methods of trading.
Still, even with that bit of advice, most Sports Traders severely limit themselves by having access to just one sportsbook. That’s why we always recommend setting up accounts at three different sportsbooks and keeping an eye on all three for their lines.
By having access at three different sportsbooks, Sports Traders will often get lines that are at least 0.5 point better than the market average.
And what could that additional half point do for you? Well, it can increase your long-term winning percentage by 2%.