Forex vs sports betting

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Stats: 1,931,735 members, 3,982,491 topics. Date : Thursday, 21 December 2017 at 07:22 PM.

Forex Trading Vs Sport Betting: Which Is More Profitable? - Business - Nairaland.

hello fellow nairalanders, online forex tarding and soccer/sport betting gambling business, which do you think is more profitable and less risky? putting into account, all risks associated with each. i learned lot of people loss money on both. which will you prefer and recommend for newbie/starter? both are very risky. if involves high risk. you only use money you can afford to lose when you want to take risk with any. won't advice you to go into any of them if your main intentions is to make money fast because it could be frustrating.

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Forex Trading vs Sports Betting – What’s Better?

This site is designed to give you the best information when it comes to trading currencies. But although forex trading makes up 60% of my personal income, the other 40% comes from other investing. This includes stocks and shares but also a growing part comes from sports betting.

When I tell people I have £50,000 across a number of sports betting accounts their first reaction is pure shock. Usually followed by the “How can you risk that much money?” The truth? If you keep correct bankroll management, all investing is easy over the long term. Whether that be stocks and shares, forex, sports or anything else. So today I’m going to run through some of my personal opinions on the pros and cons of forex vs sports. I even have a twitter dedicated to only this.

Table of Contents.

Forex Trading Pros:

Back testing a strategy is very easy – Luckily we have a crazy amount of data from the currency markets. They have been around for year and it is very easy to get information about previous prices, structure highs, news and everything in-between. As a result if you come up with a trading strategy. It is very easy to see if you would have made a profit if you traded this in the past. This means you can essentially predict the future (by using the results of the past.)

Limits – There are very few limits to trading forex. You simply have to set up a trading account and then get going. There aren’t any limits to the maximum you can make on a trade. If you are following correct forex trading principles then even if you have 100 million in your trading account you should still only be trading 1 million per trade and hence the currencies won’t fluctuate just due to your investment.

Forex Trading Cons:

Tax – You have to pay tax on all your profits. Like a business this means you have to aquire the funds to start.

Starting Capital – Probably the biggest issue to trading forex. As the spreads and pip movements are so small you will need a relatively large bankroll to become a profitable trader. Even if you get leverage at 10/1 you will still need a starting capital of £10,000+. This is one of the reasons I’m so against demo trading accounts. But that’s a rant so I won’t get started!

Strategies – Building the perfect trading strategy takes a lot of time. Back testing through previous years also takes a very long time. The issue with the strategy/system element is traders move around and become too aggressive with their trading strategies. When they fail or blow all their bankroll, suddenly its the strategies fault and not the fact you were putting 15% of your bankroll on every trade… Bankroll management is king.

Sports Betting Pros.

No TAX – Wow this is a big one for me. In the UK you don’t pay tax on sports betting winnings. I know in the US and other countries this isn’t the case. But if you are seriously making a lot of money then you might want to consider one of the tax havens, that goes for any investment earnings. Paying less tax is something I have been looking into for years. Originally having a business and paying 20-50% tax on earnings was hard enough. Nowadays with investing its down around 18%. But with sports betting you pay 0 (in the UK at-least).

More hands off – It’s a lot less time intensive than forex trading. Sports betting is more geared around value for specific odds. However you calculate that value, whether you have a hunch (not recommended) or do statistical analysis and back-test results based on previous data (recommended). Once a model is created this is very hands off. You can simply bet where you see value and leave the results to play out.

“Inside Information” – In other types of trading inside information is illegal. People go to prison for decades for trading with inside information. It is a crime. BUT when it comes to sports betting, it seems the more you know the better. Why punish someone when all they have done is found out a start player isn’t playing before the bookies adjust their prices? Or that there is going to be a storm in the middle of a football match, making it much more likely that less points are scored and hence the under total points becomes the best play. But the most important element is that individuals “tipsters” (I hate that word) can give you plays in return for cash. Now you have to be incredibly careful with these people! BUT if you follow the most reliable tipsters you can make 500% ROI per year and that’s no exaggeration!

Sports Betting Cons:

Regulation – There are lots of regulations around where you can place bets. For example in the UK I cannot use Pinnacle or a number of other large sportsbooks. In the USA as previously mentioned I believe you have to pay tax on your winnings too and in some states sports betting is straight up illegal, so check the regulations before you get started.

Low Limits & The dreaded “exceeds maximum bet” – Unlike forex trading, when you make a bet/trade you are making it with the bookie itself. This means that as your bankroll grows you are more likely to be flagged as a very good sports trader. This means you are more likely to have limits on how much you can bet per event. This depends on the size of the event. For example the maximum bet on the superbowl is over 1 million for almost all sportsbooks. But the maximum bet for a small soccer game in league 2 would probably only be £500 in most places. Bigger events have higher limits as the lines are more carefully calculated, meaning the bookies have a higher degree of confidence and hence will accept larger bets. If you are with a sportsbook or bookie that says “exceeds maximum bet” for a specific result then it is probably time to move. This means they are on to your smart betting and don’t want you to take any money from them!

Conclusion.

Personally I love both sports and forex trading. I will never stop one for another and I will be doing them both for years and years to come. But spreading “risk” and having some diversity is great. Back-testing sports betting strategies to see how much you would have made in a season is very similar to back-testing a forex trading strategy to see if your strategy is profitable. My biggest piece of advice would be don’t just rush into any type of trading. Build a strategy. Build your bankroll. Decide your bankroll management strategy. Good luck. Remember to check out our beginner ultimate guide for your forex trading introduction.

Tom is the owner of Elite Forex Trading. A website that provides beginner tips, trainings, reviews and strategies to help newbies get started making money in the forex markets.

Four different ways to bet on FOREX.

Want the best odds online? Use a betting exchange (compare the top three here)

Betting on FOREX is huge. By volume the FX market trades over $4trillion per day. That’s bigger, than online poker, bingo, casinos and sports betting combined.

There are hundreds of online Forex brokers proving access to the market through various trading platforms. If you are interested in the top ten forex brokers you can see a comparison of them here.

Here we are going to focus on four very different ways to bet on currency movements. The net effect of speculating on FX is the same. i. e. the price will either go up or down and the amount you make and lose can effectively be managed depending on what form of betting you take.

Individuals that bet on FX like to call it trading, but lets be honest, the FX market is the biggest red/black betting playground in the world. But the odds are better than even, there are lots of tools traders can use to get an edge, from technical analysis to fundamental data and event predication.

Spread Betting on Foreign Exchange.

BY spread betting on FX you are betting an amount per point in a currency move. So for example you will bet your FX Bookie (or broker) £10 per point that the EURUSD will go up. For every point it goes up you make £10. For every point it goes down you lose £10.

In order to place a bet you need to open an account with an FCA regulated FX broker. Go for one based in London and take advantage of their welcome offers. ETX Capital for example will give you a welcome bonus of up to £6,000 when you start trading FX. Apply here or compare all the spread betting companies in the UK here.

Betting on FX though Binary Options.

Binary options are basically a limited risk/reward way to bet on FX prices. You are betting on whether an FX price will be above or below a certain point at a certain time in the future. The time scale could be anything from 30 seconds to 3 months. If you are betting on a price being above a level and it does your bet settles at a price of 100, if it closes below the level then it settles at 0.

When you open a bet your binary options bookie will quote a price depending on what they think the likelihood of you being right is. So if you think the EURUSD will close above 1.0828 and it is currently in an uptrend trading at 1.0827 then is is quite likely and you may have to buy as high as 95. IF you bet £5 that would give you a max profit of £25 (100-95 = 5 then 5 x £5 = £25). Of course if you make the same bet and you lose your loss is £475. This is because you bought at 95 and sold at 0. So 95 points x £5 = £475.

It’s called limited risk because unlike spread betting where profit and loss is uncapped, with binary betting the bet settles at either 0 or 100.

To get started you need to be an experienced FX trader and be using them as part of your overall strategy. Do not expect to make money trading binary options if you are a beginner. Also, do not take advice on trades from brokers. You are betting against them and the brokers profit when you lose.

Binary options are still unregulated and mist firms operate under a Cypriot registration. These brokers should be avoided for UK customers, there is no financial protection if things go wrong and they are not subject to the strict compliance or corporate rules the FCA imposes on UK Firms.

If you want to give Binary options a go, always go with a reputable broker. We have listed a few binary options brokers here that are regulated in the UK, by either the FCA or UK Gambling Commission.

Trading Spot FX on MT4.

MT4 is one of the best FX trading platforms around. It enables customers to bet on currency price movements through sport FX on margin. This means you can buy £100,000 worth of currency with only a £200 or £500 deposit. Your loss “should” be capped by the amount of margin you have on account. If your margin runs our you go on margin call and will be stopped out by your broker. Find an MT4 broker here.

CFDs (FOREX Contracts for Different)

By betting on foreign exchange through contracts for difference you are betting on the difference between the opening and closing value of the trade and you enter a contract to do this. CFDs are similar to spread betting and MT4 and you can infact trade CFD with most spread betting and MT4 brokers.

One of the newest CFD brokers PLUS 500 offers £20 to try out their platform . Plus500UK Ltd are authorised and regulated by the Financial Conduct Authority and are listed on the London Stock Exchange. You can check out their FOREX Pricing below:

If you don’t want to bet on FX, but need to protect yourself against foreign exchange price fluctuations you need a currency broker like Berry FX who provide bank beating exchange rates, currency forwards and same day free international money transfers.

BetOpin recommended gambling sites.

Created with Compare Ninja.

Spread Betting Company Reviews.

Two alternate ways to bet on the bet365 Jump Finale.

Sports Stocks Trading vs. Sports Betting.

Sport play an important role in the development of countries. Since competitive sport is so important to many people worldwide, they often buy sports stocks in an effort to make a profit from their investment. Nowadays, however, many investors are turning to sports betting where they can bet money on a team, and if the team comes out on top, the investor collects.

Sports betting vs. trading stocks.

On the other hand, investing in the stock market takes a certain amount of level-headedness on the part of the investor. This type of investment is more complex and thus requires a higher level of wisdom than that of betting on a team to win. Checking out how companies are performing in the market takes a certain amount of business skill to carry out and in addition, a stock investor must determine the different variables concerning the market so that he or she can cut down the possibility of losses. Once an investor has the variables information involved with sports betting or the stock market, he or she can use it to find an edge.

Sports betting variables comes with a number of power ratings and adjustments. Some very important variables a sport betting punter should take into consideration before investing his or her hard-earned cash are the weather, injury, home court advantage and even revenge games.

Some important stock market variables include stock price, strategy, risk amount and percentage, target price, return dollars, percentage returns and risk ratio. Knowing all these variables as well as how to handle them can put a trader in the driver seat.

Sports stocks to watch in 2015.

Presently, Adidas owns over 19% of the athletic footwear market and is a strong contender in the manufacturing of sporting goods. On Friday, the company sold one of its Rockport shoe brand units for $280 million. The company went ahead with the sale because it wanted to have more time on its hands to concentrate on manufacturing and selling sporting goods.

In 2014, Adidas' sales drove up to 2% to stand at 14.8 billion euros and shares climbed by 3.8%. The organization's net income was 650 million euros in 2014. Most of Adidas sales are done outside of the US and at such is steadily generating growth for the company.

US sales, however, is not doing as well as overseas sales. US sales went down 7% in the first nine months of 2014. Sales in the US region stood at $2.27 billion in 2014 and Adidas' new CEO Mark King will have his hands full in trying to find ways to increase sales growth in that country for the remainder of 2015.

Since 2015, Callaway Golf stock traded at lower than its 52-week high at 22.51% and a 52-week low of 18.11%. The stock's range for a single year is $6.79 to $10.35. Last trading session for the company sees its stocks being at $7.98.

Callaway Golf's market cap is at $556.18 million. Reported earnings on October 23, 2014 were -$0.06 per share.

So far, institutions that have ownership of the company's outstanding shares are totaling 93.70%, which is a 0.53% increase. Further ownership sees company insiders selling 0.84% stocks since the last quarter.

Analysts watching Callaway stock are routing for an $8 to $9.50 price target and a 2.10 recommended score to go with it. The price earnings ratio is 79.8 while the S&P 500 average is 18.15. So far, the company has outdone the S&P 500 by 6.8%.

Callaway moving average for its 50 days is $7.55 and it carries a $7.65 200-day moving average as well. The company's revenue posted was in the $0.17 billion, standing against an estimated $4.55 billion.

Callaway stock is a must watch for 2015 and analysts should not be at all surprised if this stock make better headway than expected. Investors should try for ownership of this company's stock if they want to make money down in the year.

World Wrestling Entertainment Inc.

During last trading, World Wrestling Entertainment Inc. shares climbed 2.2705% or 0.23 points. Opening trade was 10.21 as the stock went up a high of 10.3639. Eventually, profit booking caused the stock to fall to 10.36 with a convincing volume of 580,785 shares.

As World Wresting Entertainment stock reached a 52-week high, it registered 31.98. In addition, it carries a 52-week low of 9.8202. On closing day, the company's stock stood at 68.32% while moving away from the last 52-week high.

Back in 2014, the company shares dropped 3.6% or 194,460. On December 15, 2014, the public saw shares interest fell from 5,436,413 to December 13, 2014 figure of 5,241,953 with 11 covering days. At that same time, updated interest was at 16.3% of stock floats. Average daily volume of the counter was 459.409 shares.

As recently as Friday, JP Morgan Chase and Co. increased Nike's share from $100 to $110. Presently, JP Morgan is carrying an overweight rating on Nike's stock. Other companies to pitch in on Wednesday with their ratings are Telsey Advisory Group, Zacks, Deutsche Bank and Oppenheimer. Telsey gave their hold rating of the stock to be $109, which is an increase from $102. Zacks hold rate came as a downgrade of Nike's shares from one of an outperforming to neutral rating and set the price target to be $102. The Deutsche Bank analysts placed Nike's shares price target to be at a buying rate of $105 while Oppenheimer went ahead and set the shares under the outperforming level.

Friday's trading saw Nike up at 0.32% and reaching $96.16. Trading volume stood at 3,379,910 shares. The company's 52-week low is $69.85 and it carries a $99.76 as its 52-week high. The stock's 50-day moving average is $95.66 and its 200-day moving average is $87.54. Market cap for Nike organization stands at $83.076 billion and it boasts 28.54 as its price-to-earnings ratio. Nike's revenue for the quarter is in the range of $7.40 billion.

The stock market might have its up and downs associated with it; yet, it can be the vehicle to accumulate one's wealth in the end. As stocks continue to advance and decrease, investors may have a difficult time keeping up with the market. Still, those investors that keep up with the market might find that they become much richer in 2015 than when they just started out because of the economic boost the country is enjoying at this time.

The sky is the limit for both investors on the stock market. There can be successes in both markets and investors playing at any levels can enjoy the thrills of victory and not necessarily endure the agony of defeat.

About GuruFocus: GuruFocus tracks the stocks picks and portfolio holdings of the world's best investors. This value investing site offers stock screeners and valuation tools. And publishes daily articles tracking the latest moves of the world's best investors. GuruFocus also provides promising stock ideas in 3 monthly newsletters sent to Premium Members .

This article first appeared on GuruFocus .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of NASDAQ, Inc.