How To Apply A Risk Averse Spread Betting Approach to Other Avenues

How to Apply a Risk-averse Spread Betting Approach to Other Avenues

With sports spread betting, punters get the flexibility of maximising their profits with successful bets. The approach to spread betting differs somewhat to many other styles of betting and investments but that’s because how much you lose is determined by how right or wrong you are with each spread bet. For instance, a spread bettor may look at a goals market for a game where they think shots and goals will be at a premium. They will bet under 2.5 goals at $10 and for every goal less than 2.5 goals, they will receive $10 and for every goal more than 2.5 goals, they will lose $10.

It’s a scalable approach to sports betting, with the ability to make big money, but there is also the prospect of losing big chunks of your bankroll too if you fail to adopt a risk-averse strategy to managing your bets online. The most common risk management mechanism within spread betting as a whole is to apply a stop loss. This is the point of no return – the point where you cancel your bet and take an acceptable loss in relation to your overall betting bankroll. Spreading risk and using even stakes when betting is a sensible strategy and this can also be applied to various other financial avenues.

Trading sports on betting exchanges

Money management when trading sports on exchanges is equally important. You have to accept that you will have losing trades and, as such, you must manage your bankroll accordingly. Trading using even stakes, of 2% of your bankroll per trade, for example, enables you to absorb losing runs without putting your entire bank at risk. Another effective way of managing your risk is to remove some of your stake from a trading position that has already headed in the right direction. For instance, if you’ve backed Manchester City at 1.5 to win at home to Bournemouth and they’ve already taken the lead in the opening 20 minutes, you could look to lay off some of your initial 2% stake when their price drops to 1.15 and either equalize profit across all outcomes in the event of an unforeseen footballing upset or leave all of your profit on Manchester City.

Spreading risk on the roulette tables

There are safe roulette strategies that exist which can maximize your betting bankroll for as long as possible. They won’t guarantee that your bank will last, due to the average 5.26% house edge, but they can protect you from losing a huge chunk of your bankroll in one spin of the roulette wheel. Flat betting i.e. sticking to the same size bet every spin is a good way of keeping track of your bankroll. It’s also worth bearing in mind what type of roulette you wish to play. If you’re looking to maximize your bankroll to play and have fun for as long as possible, it might be worth steering clear of American roulette wheels, which have an additional double zero pocket as well as the single zero most commonly found on 37-pocket European roulette wheels. For those that spread their risk by betting on all the numbers, beware that you have an additional chance of losing your entire stake with a 38 pocket American roulette wheel. Going into each bet with your eyes wide open is a spread betting trait that should certainly be adopted at the roulette tables.

Real estate investments

For investors developing a real estate portfolio, a risk-average management plan is essential to protect investments. Life is never plain sailing and will almost always throw up an obstacle to overcome and, when investing in commercial or residential real estate, it’s vital to go into each purchase with your eyes wide open as you would with any spread bet. Due diligence must be made before completing each transaction, while risk to properties can also be mitigated or redistributed by taking out insurance policies – the real estate industry’s own form of a stop loss which puts a ceiling on the excess an investor must pay to repair a damaged property.

Personal investment plans

Risk management is a necessity, not just an option, when it comes to investing your own money for the future too. The amount of money you lose on investments will determine how much you can maximise the best investments to achieve your financial aspirations. Arguably the world’s leading investor, Warren Buffett, who is now worth a reported $77.7bn, says that rule number one with any financial investment is not to lose money, and rule number two is to never forget rule number-one! Aside from limiting your exposure to any single investment, diversification is also a good way of hedging investments in the same way one could with spread bets. Purchase assets or shares in sectors that aren’t directly linked so that if one investment suffers you still have a chance of the other maturing. Investment diversification is not as easy as it used to be as many asset classes are becoming intrinsically linked but, if you can find the right niches, it’s a good strategy to limit your overall risk and protect your vital accounts.

As with spread betting and all of these other financial pursuits, you can’t prevail without minimising your losses. Never be afraid of becoming a defensive bettor, trader, or investor; it might not be sexy but it’s a darn sight wiser!



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