In principle, football results are randomly distributed but the outcomes of games can be predicted fairly accurately using statistical modelling.
This is contrary to other forms of gambling loaded in favour of the house such as lottery and roulette, where success tends to rely more on luck than strategy.
With football betting, there are only three possible half-time and full-time outcomes (home/draw/away) for example, and sometimes just two sides to a football bet (e.g. over/under ‘X’ goals).
In contrast, the UK National Lottery has 45 numbers providing over 14 million combinations of the six needed for a jackpot, meaning the chances of winning are drastically low.
Similarities of Professional Football Betting and Stock Market
Indeed, football betting is a little like stock market shares where it is possible to select profitable investments, and traders can forecast with a deal of accuracy whether prices are more likely to rise or fall.
Whereas in stock markets prices sometimes rise or fall unexpectedly, freak results also happen in football as every fan will have observed.
I was fortunate enough to receive tutoring on financial and quantitative analysis of stock markets at university but of course, football betting is not on the syllabus. However, the more I study betting and its underlying statistics, the more parallels I can draw with stock market analysis.
The secret of long-term financial success in the stock market is not necessarily always about buying the right shares or options.
Obviously, a good selection of instruments naturally influences the profit margin in a positive manner but, long-term financial success is not guaranteed if the portfolio is wrongly structured. The same applies to football betting.
A professional stock broker would not dream of investing all of his clients’ money in just one share or option. Indices such as DAX, MDAX and TecDAX all include at least 30 companies in their portfolios. The DAX 100, as its name suggests, contains 100 companies.
Why, therefore, does the stock broker look to invest in a wide range of markets? The answer is obvious: This is done to reduce or spread the risk if one or another share price develops in the wrong direction. And, even in the very unlikely event that the whole stock market collapses, the indices will never totally drop to zero.
Translated into gambling, these principles indicate that you should never ever put all your bank on one individual bet, however ‘sure’ it appears. You must always bet on (invest in) a portfolio of events in order to spread the risk/investment for long-term returns.
What Exactly is a Portfolio?
One interpretation reads: …”A bundle of investments in the possession of an institution or an individual… Usually, an extensive analysis precedes the structuring of a portfolio… A portfolio is typically part of the strategy to reduce the risks of financial investments by diversifying”…
Translated into betting language:
…”A portfolio is a package of bets where extensive analysis has determined the choices (picks)…This is an essential part of the whole betting strategy in order to reduce the risks of losing by diversifying”…