• The Most Basic Concepts That Drive Financial Market Betting

    Added - June 23, 2014 Financial

    If you're wanting to get involved with financial market betting, then there are some basic fundamental concepts that you're going to have to understand first before you will have any chance of gaining an advantage over the long run. These concepts are the pillars of solid strategy and risk management, and they are the key ideas that everything else will be built on when it comes to learning how to increase your chances of coming out on top when betting on different types of financial markets. Follow these instructions to learn these concepts, and you'll be one massive step closer to becoming a long-term winner.

    The first idea is bankroll management. This is the key concept for anyone to learn in this type of betting because financial market betting is not about picking winners every time. Instead, it's about picking bets that will win more than their share even though you're still going to lose a non-trivial portion of the time. You need solid bankroll management to absorb these losses and the streaks that can come with them so that you have enough of a cushion to realize your advantage over the long run.

    Next up, you need to understand the idea of expected value. Expected value, or EV for short, is the average profitability of a bet. Your whole goal is to find bets that you think have a positive enough EV to give you enough of an average profit for the risk involved. Making a $100 bet for an EV of $2 is not as good of a return on your investment as a $5 with an EV of $0.50 even though the average profit of the play is going to be four times less. It's all about the relationship between EV and the risk to get it.

    Finally, you have to understand the concept of gaining an advantage over everyone else who is betting on the markets. Everyone has access to the same basic information about the markets, and your goal is to use that information more consistently and with more accuracy than everyone else. When you do this, you can gain an advantage which will be decisive over time resulting in profits for you. When you understand these three ideas and apply them to your financial market betting plans, then you'll have a major leg up on the rest of the competition.

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