Whether Football Betting is Speculation depends on Investment Style

There are many roads to Rome. There is not only one method to invest. Not everyone will agree that value investing is the right way. Famed hedge fund manager Michael Steinhardt, who recently criticised Warren Buffet, was very successful using macro trading.

Macro trading tries to predict how economies move and investing based on these trends. For example, if the world economy is growing too fast, you might predict that oil prices will increase. If oil prices increase, it would increase profit margins of energy companies such as Exxon and Shell. You would buy a few energy companies, anticipate central banks to fight inflation, then sell them for a profit.

In soccer betting terms, you would look at how many goals are scored weekly in the EPL and try to predict trends. If you think that there would be many goals in the particular week, you would choose a few teams which are high scoring and have good match ups. Instead of choosing one or two particular games, you will need to bet on a particular "industry". For example, "Champions League" industry, you are thinking that the top 5 teams are going to score many goals this week, you will place on at least 3 of the games to go over.

Macro traders will use different types of trading instruments, to achieve success. It would include more speculative instruments such as options and futures. In value investing, the first rule of investing is the preservation of capital. Thus options and futures are considered as speculation since there are no underlying assets.

We have previously stated that football betting has no underlying assets and is more closely related to options and futures. Your investment style and character should determine whether football betting is possible.