From casinos, bookmakers and market makers.
For the past 25 years, I have been an avid supporter of all three companies – casinos, bookmakers and market makers. And by supporter, I mean that my hard-earned money was to support these companies.
At some point, it occurred to me that these business models are connected and that connection became the access to an innovation in my performance and profitability.
Let’s look at these business models:
Casinos make money because each game they offer has a statistical advantage built into the casino. This margin may be very small (less than 2%), but over time and the millions of bets placed by casino users, that margin wins the casino with enough money to build elaborate hotels, fountains, giant pyramids, towers and replicas of famous landmarks.
Generally, a bettor is an expert in the field in which he or she offers bets link cmd368. Betting agents must be extremely knowledgeable or they cannot make a profit.
A bettor’s goal is to establish a point spread that allows him to profit, regardless of the outcome of an event. This requires a constant adjustment of the odds and, in some cases, a bettor may even buy bets from another bettor to create the desired spread.
Have you thought about how you can call your broker (or go online) and sell 1,000 Cisco shares at any time? I mean, who’s buying those shares? How does it really work?
Well, a market maker should be thankful for that. There are people, market makers, who are always willing to be there to buy or promise to sell any stock. They buy what you are selling or go out and get what you want to buy. They are the grease on the market wheels.
What is interesting, from our perspective, is HOW MARKET MANUFACTURERS EARN MONEY!
Look, they are taking a risk with all the negotiations. Suppose they buy your 1,000 shares of Cisco that you want to dump and before they can sell it, does the price drop? They are risking their assets with every trade they facilitate.
How they fight it, how they profit, is that they add a little bit to each trade. They buy for a little less than the current price and sell for a few cents more than the current rate. They don’t need a lot of scheduling. Only a few cents on each side – but given the volume of what they do, they end up ahead.
Not only is the risk mitigated, but the amount they add puts the odds on their side. They are not playing for stocks to rise or fall. They just want volume!
THE CONNECTION OF MILLIONS OF DOLLARS
Can you see that? All three earn money, ensuring that they have the statistical advantage at all times.
None of them needs (or seeks) to earn a lot. No, your money comes from the EDGE that they set up BEFORE any bets are placed. In fact, they are the only ones
Place bets, don’t place bets.
All they need is a small advantage and they know, mathematically, that they will get ahead.
And? Good for them. What does this have to do with us?
Well, what if I told you that there was a way to get the same statistical advantage that casinos, bookmakers and market makers have? What if I told you that there was a way for you to stop doing business and start doing business (like a casino, bookmaker and market maker)?