what people don't seem to realize is that, the stock market is just as much "gambling" if you don't know what the fvck you are doing.
I can only speak of horse racing as that's what I do and there are 3 publicly traded companies (youbet, CDI and betfair) that allow me to make a wager from my couch (although with what takeout is at some track's there are times i'd be more than happy to find me a bookie), and I can either get a check mailed to me by a publicly traded company, or i to Santa Anita and pick up my money (xpressbet) from my online account.can go
The difference between investing and gambling is the degree to which you may "predict" an outcome.
there you have it.
With investing, you add up all the factors of your due diligence, then throw in your gut feeling. With gambling, you have only the odds.
not necessarily true with horse racing. there are at least 20 compaines that sale you information, stats and the like similar to the stock market, to help you predict "winners". Daily Racing form, brisnet, thorougraph, timeform, FAST sheets. My horse racing "bill" per month is about 150 bucks with racereplays, DRF and brisnet that I buy.
I think you hit it dead on with your first sentence. The difference between gambling and investing or what not is moreso of how constant and confidently you can predict an outcome.
How is calling up your broker and him telling you who to invest with, any different than walking into a track and buying a tip sheet from the track handicapper? I don't consider either really investing, you are gambling in that person's ability to "pick winners"
Also, why do I never hear of anyone who makes their living based on gambling on sports???
There are. You haven't looked hard enough.
Again I can only speak of horse racing, but I can tell you that.. and I would imagine it's the same with poker as well or any game that you it's not you against the house, there are actually people walking around your every day track that given the right tools could make a living, a good one, doing what they are doing. The difference between a long term winner in horse racing and a long term loser 9 out of 10 times.. okay probably a little less but still, is usually bankroll more than anything else.
It's not like you wake up one day and you just start hitting at an 80% clip lol, I don't know a person that wins more bets than the lose. Hell February and I was just 22 for 39... a shad over 50% which is ****ing scorching hot for an entire month. . you are generally making the same wagers as you were when you coming tot he track with 100 bucks. In march I was 26 for 56 which is about where I normally am.
Say you play with a 1% bankroll, meaning you wager 1% of your bankroll on any given race (which is what I do, actually .05 now as it's grown and I like feeling comfortable)..
if your bankroll is 1,000 dollars.. you just don't have a chance against the guy that has a 200k bankroll. you just don't. not becuase he's a better handicapper than you.. lol, he probably isn't. But... a 1k bet on a 2/1 shot doesn't look that bad lol. that's 3 grand, and 2 grand in profit.
a 1k bankroll, you aren't going to be playing with a 0.5% method anyway it's going to be closer to 2% so say you 20 bucks, at 2 to 1 that's 120 dollars.
and if you can keep doing that that's fine. But the 1000 dollar guy is going to keep trying to beat the fav because he wants to make the 3 grand, and to make the 3 grand all the 200k guy has to do is make a normal wager. if that makes any sense. Basically what i'm saying is that the avg person in horse racing loses becuase they dont' have the right bankroll to play not becuase they suck... well most dont' know what there are doing but there are a few people if I gave 100k and said play on playboy, could quit work tomororw if they so chose.
Then in horse racing the tax situation is just ****ed up as hell.. not only do you got to beat the track you got to beat the taxes... it's like beating bowser and then you turn around and got to beat king coopa too. anything that you win that pays over 300 to 1 odds is auto 28% before you even get to touch your money.
So the avg person loses anyway as it is, then when you do hit, it's 28% off top. that's called a "signer". so i get lucky and hit a 2 dollar trifecta that i put in a 20 dollar ticket on and it pays 660 dollars well i'm just getting 475 back.
now on regular win place show wagers you dont' have this problem (for instance, the guy that won the 100k wager on the Kentucky derby day, did not have to sign for anything becuase it fell under the percetage.. super saver was just 8 to 1 even though he played it 50000 times.. won 900k.)... but he will get that assed taxed at the end of the year. 28% overall is not bad if that's your sole income. But takeout (which is about 20%) plus 28-40% for taxes (some states have state tax as well)
The avg 2 dollar wager
you have 28% of it going to the state
20% of it goes to the track. so already your 2 dollars is $1.04 before you even win anything.
Then to top it off most people, just.. really, don't know what they are doing.
If you are half ass good what you do, and you keep good records and can make a strong case that this is what you do for a living you can write off alot of your deductions as business deductions.
