I am frequently asked “What kind of discipline is needed with sports investing, and why is it so important?”
What most people fail to realize in sports investing is how important it is to be mentally focused! Part of this focus means that you have to learn to be good at winning, but you must be even BETTER at losing. What do I mean? Well, when a gambler goes out and wins a bet or two – he starts to feel like he is on top of the world. For instance, our hypothetical gambler won $2,000. Over his next handful of wagers he loses that $2,000. First and foremost, he will forget the high horse he was on, and start to feel like a loser. He will get desperate to win again, and be back on top. This will lead to even more devastating choices, as he will most likely lose more money, until he can’t afford to pay or play anymore. This is where discipline must come in!
In the previously described scenario, we are speaking about a gambler who chooses to give back a portion of his winnings to gamble for more. Why? When he loses the money that he previously won, he feels as though he hasn’t broken even. This mentality and lack of discipline is a HUGE reason why the lights stay so bright in Vegas, and why gambling is a multi-billion dollar industry. Discipline is one of the tougher practices to master for most when transitioning from gambling to investing. It was definitely a long process for me, but one of the most important steps to be successful in anything you want to do in life.
Being that discipline is such an important quality, I would go so far as to say that if you do not yet have it – work on that first before you invest one penny. One way to practice discipline before you start investing is paper-trailing. Paper trailing is when you take all of your investments (whether they are your own or from another investor) and write them on paper just as you would bet them, but only on paper until you have mastered it. I have always been a big believer in paper trailing as a system for anyone in the beginning of investments no matter where you get your information from to invest. Paper trailing is an easy way to learn how to invest with NO RISK. Continue to paper trail until you are confident, and disciplined enough to put your plan to the test and investment.
Again, my goal is to create a movement big enough to reach anyone out there who is stuck in the fruitless, and endless cycle of gambling and retrain their habits toward a mentality of investment. I would love nothing more than to see everyone kill the book, but most importantly STOP GAMBLING and learn how to invest. It took lots of time and money to gather important comprehensive information and create formulas & systems for me to put to use to become a successful investor. One thing I’m unable to provide is discipline. That is one key tool for successful investing that has to come from within. Once you have that with the right mindset and the right plan in place (system) – your on your way to a huge success with sports investing. Think of sports investing as a race, it is not a quick gambling sprint but a long term investing marathon. So pace yourself to your speed as we all have different financial needs. Everyone’s bankroll (amount you have invest/not needed for bills) are different sizes, therefore everyone can’t afford to risk/win the same amount. Remember to paper trail until you see success on paper and you feel your disciplined enough. Then just have some patience and watch your bankroll grow and grow!