The secret of thinking big money and not thinking little money is a frame of mind the player need to have if he or she is to make big money. The mass majority of players that consider Return On Investment (ROI) in racing usually consider making a few hundred dollars in profit over a few wagers spent. Or an ROI of a few cents or nickles on the dollars. There’s another way which is as simple and straight forward but much more powerful. This is the case where you intend to play racing as a job or career and play 1,000’s of races over several or more years and not as a pass time.
An example: in the course of 10 years exact at any major track in the USA when the money is summed for all wager types for such a time period it adds into more than several millions of dollars. If you sum the total for 4-5 major tracks it reaches over $30,000,000 for that same period. $30,000,000: THAT’S REAL NAVY, SON! If you’re thinking about getting 5%-70% of that then you’re thinking big money, big business and not gambling. Why? Because you’ll never see the day when gambling will net you that type of money. You need design and not luck.
Thinking small money will not do so either. And you can put your money down on that and win. The secret of thinking big money and not thinking small money in racing is to think big money in the right way. To repeat: the right way. Of course you can play the pick 6 and get lucky but you can’t repeat it at will. It was just an accident. The money is just as real of course. There’s a way to know statistically and of seeing the game a certain way. There’s a way to create a flexible firm plan.
An example of Return On Investment or ROI. In one year exact you put $500 in A and $600 in B investments. You get back $75 on A and $90 on B in profits. Turn each into a fraction and turn each into a percent. Such as: $75/$500 = 15% and $90/$600 = 15% respectively. Another example: in one year exact you put $1,000 each into investments A and B. You get back $75 and $90 respectively in profit. Turn A and B into fractions and turn each into a percent. Such as: $75/$1,000 = 7.5% and $90/$1,000 = 9% respectively. This is called rate of return.
To obtain a large percent of that money and the way to do that is to know and practice handicapping and profitcapping very well. Handicapping is predicting the order of finish positions of races well. Profitcapping is predicting the profit to be made from the in money positions from wager types and the payouts over months and years while dealing with each race on an individual and personal one on one basis. Don’t seek to make a few hundred dollars but 100’s of 1,000’s of dollars or a few millions of dollars. For this you need a business, a statistical and a thinking big money view-point. This is partially the secret of thinking big money and not thinking small money.
How to grasp Profitcapping and return on investment or ROI is the main reason for horse racing and not simply racing for the sake of racing. Players are there to make money or to profit. People handicap horses so they can pick the horse they believe is going to come across the wire and make them more money than they put in. Racing’s about investing and not gambling. All gambling is investing but not all investing is gambling. You can predict a thing by yourself but it takes two or more persons to bet. When you wager anything on a bet whether it’s a car, house, money, jewelry, etc. you’re gambling.
The difference between gambling and business investing is: when you have a 51%-100% chance of losing the endeavor you’re gambling and when you have a 49% or less chance of losing the endeavor you’re business investing. Every time you invest (gamble or business invest) you need to know you’re chances of profiting or losing money in detail. Taking a business perspective of racing is the most sensible option because racing has to seen for what it is: a business. Players don’t go into detail enough to study racing as a business overall.
Players consider handicapping the main way to think about making money. But it’s a matter of understanding ROI over months and years ahead. Knowing how much can be made on a long-term basis. As an example: lets say you take a simple random statistical sampling of 2100 trifecta payouts for one year. This amount turns out to be $220,000 after all payouts are added. A ticket for each race sampled is bought and the sum invested is $100,000. You lose 1000 races and win 1100 races. When the year is over you add up all of the money you got back after the investment and it turns out to be $120,000.
You made a $20,000 profit. But $220,000 minus $120,000 = $100,000 and this is the payout money you didn’t get. And if at the years’ end you get back $85,000 then your loss is $15,000. Or $100,000 minus $85,000 = $15,000. In other words it’s what you’ve invested plus or minus what you got back. If you put in $100,000 and get back $100,000 then you broke-even. This is how to grasp profitcapping and return on investment or ROI and what it’s all about. This isn’t all there is to Profitcapping. Indeed there’s much more to say the least.
This way you can see years ahead in the game. Profit or ROI in racing is simple. You endeavor to get back more than you put in for a specific time period. Be it a week, month, year or several years. Simple statistics lets you do this and know this in a highly specific way of how much money is there and how much must be spent buying tickets over that specific time period to make a profit or Profit – capping. Capping means the process of predicting a thing. What are you going to predict? the horses and the money. This is part of how to grasp profitcapping and return on investment.