Sports Gambling vs. the Stock Market

[InTheHole]

Provide a rationale how these two are different. I don't see the difference, especially with the open nature of the Stock Market---EMarket transactions since the birth of the Intenet

Assumptions:

1. Some of us can either pay or have the right contacts to be ahead of the curve to profit (true for both) Despite what some may think, factors such as illness, marriage problems, east-west coast traveling, etc. do add an "edge".

2. The movement of the Stock market has built into it all the information that is available to the PUBLIC. Similarly, the vig, spread, etc to place a bet has all the fundamentals or information factored into it.

3. Bad Money Management=losses/risk. Lopsided porfolios=losses/risk

We look for underpriced stocks. We look for good lines.


There's more similarities. I would like to hear some of the differences.

[Data]

Unlike the financial markets, the sportsbetting market is very thin. Due to the nature of participants, it is easier to beat but the rewards are limited.

[BrentCrude]

It's always nice to have some risky pie in the sky penny stock!

I always have a few million shares of the flavor of the month .0001 pink sheet penny stock.For every $100,you get a million shares.There is no way you can buy for lower than that so you don't have to worry about it bottoming out further after you buy it.The only bad thing is,the market makers that trade in your stock have an extra decimal to work with and that creates their spread-juice advantage over you.It's like you have millions of seeds and you hope they all grow into big trees.You put a limit sell order on them in case when you aren't around,someone starts the pump and dump and it goes to the moon.They can go up 50X in a couple days and go back down 50X in a couple days.QBID,a gay broadcasting company that was a fraud,went up many hundreds of times in a short time.You get the same rush and feeling that you are gambling and have a chance to win big just by checking the quotes each day.Your gambling rush goes alot further in penny stock because you buy the bet once and it might stay in play for a few years.Watch out so you aren't buying something that will reverse split and take away all your growth potential.Always buy a penny stock with an ask and bid and decent volume.

It's also fun going on www.ragingbull.com and finding out from other forum posters good things that are happening in the company you invested in.The same attitudes are at Raging Bull as are here at SBR.

Find out on Raging Bull from forum posters which brokers are penny stock friendly charging nothing for inactivity fees,low commissions and you can go the free paperless statement route.Once in a blue moon these brokers will give you a few commission free trades for new signups.Some of the bigger brokers treat the penny stock buyers like they are the scurge and a nuisance to them.

Playing penny stocks is kind of like playing fantasy sports drafting unknowns you think will produce.

Penny stocks are like single A rookie league baseball compared to playing in the big leagues buying New York Stock Exchange stock.They are not regulated as heavily as mainstream exchange stock.Some put out accurate SEC reports but some slack off by not reporting in timely accurate fashion.On www.pinksheets.com you can get the sec reports.You can see where alot of companies are bleeding red ink and are close to bankruptcy.You can also see if a company is what's called a shell with no viable producing income.

$100 worth of .0001 stock where you get 1 million shares is a great gift for a kid with no income.If the $100 suddenly turns into 7K,you pay no taxes on the profit.On the back of the stock certificates themself,there is a space to fill in to gift the stock to someone.You might be able to get away without paying taxes if you gift it to your kid too.

[THE HITMAN]

Major difference...income tax ramifications. Not too easy to skirt with stock profits which leave a major paper trail.. Alot of ways around it from gambling.

[InTheHole]

Major difference...income tax ramifications. Not too easy to skirt with stock profits which leave a major paper trail.. Alot of ways around it from gambling.

That's a given. I was thinking more of the technical aspect.

[durito]

Major difference...income tax ramifications. Not too easy to skirt with stock profits which leave a major paper trail.. Alot of ways around it from gambling.

Breaking the law and not paying your taxes is the same.

[square1]

The biggest pragmatic difference is that a "dart-thrower" has a positive expectation in the stock market and a negative expectation in sports gambling, I think.

The biggest philosophical difference in that money that's put into the stock market is usually used for investment, which can create jobs, and ultimately, more wealth. (Not true for commodity trading, of course). This is why you can have a positive expected return even without inside information. A significant share of sports gambling money is simply passed from person to person. The vig does represent a type of consumer spending, which creates some jobs, though.