"Investment must be rational; If you don’t understand it, don’t do it."
Never ever invest in what you do not understand. Before the financial crisis, financial advisors tricked many people to invest because they claim that the rates of return are high. The lesson learned is there no such thing as a free meal in life. Without analyzing, little knowledge of the investments and most importantly passion, your success will depend on luck. How many times can you get lucky?
On another hand, stock picking or football betting is not 100% reliant on skill. First you need to stumble on the right opportunity, then you will need to execute well. What is critical is finding the balance between knowledge, opportunity and execution.
These are the questions to ask:
1. Is there an opportunity for a great investment?
2. Do I have a good knowledge of the market?
3. How much should be invested?
Let's apply this investment basics to football betting. We shall look at the yesterday's game: Arsenal vs Stoke (Final Score 1-0)
1. Is there an opportunity for a great investment? Arsenal continues to attack, Stoke are leaving gaps in their defense to search for an equalizer.
2. Do I have a good knowledge of the market? Arsenal looks attacking, statistics show that Arsenal score most of their goals in the 80-90 time frame (16.07%) and only 11.54% of the time Arsenal games do not have a goal in the 2nd half. Is this sufficient? NO! How many goal scorers are on the pitch? Van Persie is injured, Fabregas and Walcott are subbed out, Nasri just returned from injury and Chamakh (subbed in at 80 min) has not played in awhile. Does this justify opportunity?
3. How much should be invested? Have I calculated the risk and returns? We will be explaining this critical calculation soon, so stay tune!
Conclusion: Would Arsenal-Stoke game be a good investment for goals? NO!!!
Hopefully this will help you in your investment decisions.
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