5 Key Rules for Sports Trading Success

Today, we’ll be talking about five of the most important rules when it comes to having the right mindset for success in the sports betting market.

The article is part of an ongoing series on educative sports trading topics and on treating the sports betting market as an investment opportunity:

”Investing is the act of allocating capital to assets with the goal and expectation of generating a profit. Good investing involves research, risk analysis, managing capital responsibly, and diversifying investments. Successful investors follow a long-term strategy or a system that matches their goals and tolerance for risk, and they follow that system non-emotionally.”

The following five rules are cornerstones for anyone who wants to make it as a sports trader.

Let’s dig into them!

1. Set realistic expectations

There are no get-rich-quick schemes in life that actually work. While you should aim and expect to be generating very good returns in sports trading, the fact is that it will require time and effort.

Our systems generated incredible ROI’s last season – 173% in baseball and 168% in football. Those are some crazy numbers when you compare it to any other type of investment opportunity that’s out there. And while some have been able to ride the wave with crypto currencies or cannabis stocks and had similar gains before the valuations plummeted, most jumped in way too late and ended up losing money. Our models have been returning these types of profits for years and years.

So, while sports trading can be amazingly profitable and your expectations can be high, they should also be realistic. Think about how much time and money you can allocate, educate yourself, and start with a commitment you are comfortable with.

And if you want to get a head start, make sure to check out our VIP Alerts service.

2. Understand that you're in this for the long run

A sports trading system’s performance is measured at the end of the season. Winning or losing a single trade is not a sign of success or failure. Instead, you will be conducting tens or even hundreds of trades throughout a season, and the end result of all of that is what counts.

Sports trading systems are based on a profitable pattern that has been discovered – something that has been generating good returns for multiple seasons. This means that you will be executing trades for games and investment opportunities that match the criteria of that pattern.

Don’t let the emotions of winning or losing a trade affect you. The long run is what matters. And when you are generating profits and have the capacity to allocate more cash to your systems over time, make use of it.

Which leads us to the next two rules…

3. Go for compounding effects

Make your earnings generate more profits for you – that’s what compounding is all about! If you are unfamiliar with the term, here’s a definition from Investopedia:

”Compounding is the process in which an asset’s earnings, from either capital gains or interest, are reinvested to generate additional earnings over time. This growth, calculated using exponential functions, occurs because the investment will generate earnings from both its initial principal and the accumulated earnings from preceding periods. Compounding, therefore, differs from linear growth, where only the principal earns interest each period.”

In sports trading, this means reinvesting your profits into your systems. When you do this, your bankroll and unit sizes will keep on growing even without adding more cash to your systems. A few years down the line, that makes a humongous difference for the ROI of that initial investment you made.

It’s important to be smart about how to approach this in sports trading – immediately increasing your unit size after a few winning trades won’t do the trick. Make sure to read our article on compounding in sports trading for more.

4. Keep on investing more

Another way to make sure that your investment keeps on generating higher returns over time is to allocate more cash to your sports trading systems over time. Maybe you started out small to try things out and are now confident to add more. Or maybe you are able to add another chunk of cash to your portfolio at the beginning of each season.

Allocating more cash to your systems incrementally over time allows you to invest with the sort of amount that you are comfortable with, while constantly growing your bankroll and adding more firepower to your portfolio.

In the long run, small additional investments and reinvesting your profits will lead you towards huge profits.

5. Diversify, diversify, diversify

Last but not least, diversification is an important concept in investing, and sports trading is no exception.

When you are running a single sports trading system that concentrates on one of the major leagues for the duration of the season, it’s possible that the system will have a single season that will not end up in significant gains.

Our ScoreMetrics systems are always backtested to return sizable average profits, and not to have multiple losing seasons over long stretches of time. Almost all of our systems end up returning great profits each year.

But if you are working on just one system that happens to have a 5% ROI year, it can be quite a disappointment. Instead, you should be running multiple systems so that your investment is diversified, and you will end up looking at big positive numbers at the end of each year.

There you have it – five of the most important rules for the right mindset in the market. Following these will set you on your way to success!

Also, don’t forget to check out our head trader John Todora’s new book – “Zero Correlation Investing – The Score Metrics Secret”. It’ll teach you everything you need to know about smart investing in the sports betting market. It’s currently on sale for a limited time, so go grab a copy now!

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