Not that I’m knocking having a punt: Heading to the racetrack on a Saturday afternoon with a few mates to have a few beers and place a few bets can be a fun way to spend your money.

But I’m guessing that if you’re reading this post, then you’re interested in more than just gambling. You’re actually interested in horse racing systems that allow you to earn a consistent income from betting on horse racing.

Well it certainly can be done but to succeed there is a vital element you simply have to put in place first:

YOU NEED TO APPROACH BETTING ON HORSE RACES AS AN INVESTOR RATHER THAN AS A GAMBLER

Let’s look at the difference between the two:

1. An investor has a principal amount of money and he is looking for a consistent return on that principal over an extended period of time. A gambler has an amount of money which he is looking for an immediate return on each and every time. The investor views time as a friend, not an enemy.

2. An investor regards his principle as sacred and will only risk a small percentage of that principle on any given opportunity. A gambler has no real respect for his money and has already (sub-consciously at least) earmarked that money to be lost.

3. An investor has a pre-defined plan for getting a return on his money and will work that plan to achieve his desired outcome. A gambler usually has no plan at all or chops and changes his plans as he goes along.

4. An investor expects that he will have losses along the way and doesn’t panic when they occur. A gambler panics if he experiences a loss and tries to recoup that loss straight away.

Or to summarise – an investor employs a “business” mindset rather than a “recreational” or worse still “desperate” mindset.

If we look at what investors consider to be good return in other industries: top share fund managers are considered geniuses if they can manage consistent 15% per annum returns; real estate investors are more than happy with a 10% per annum return over the life of their investment; it boggles the mind to consider the opportunity that gamblers throw away when betting on horses.

The fact of the matter is that with a disciplined approach and good money management – a 15-20% return per month is quite easily achieved by betting on horses and all the profits are tax free!

Before implementing any horse racing system, take the time to examine how you’re approaching the opportunity: as someone who is lookig to make a quick buck or as someone who is looking to compound consistent returns over an extended period of time.

It is the latter approach which categorises your professional gamblers and allows them to make a full-time income from betting on horses.

Want To Know What Horse Racing Systems We Consider To Be The Best? Click Here To Find Out

The fact of the matter is that there are several horse betting systems -  all of which can deliver profits if rigidly adhered to. However at the same time there a bunch of dud plans out there which are going to fail from day one.

The industry being what it is – with its allure of quick and easy dollars – means that unsuspecting punters can easily be taken for a ride by system developers who are more skilled at the sales pitch than they are at turning a dollar from racing. I’d love to say I know all this from hearsay but the fact of the matter is that I’ve made some dumb mistakes in this arena so I’m keen to help others avoid doing the same.

The following are some of the things to be wary of when looking at different systems or services offered in the industry:

1. Tipster Services
So here’s a business idea: I set myself up as a professional tipster and convince you to subscribe to my betting service for $X a month. If the horses I tip win, all well and good, you keep paying me money; if they don’t, you keep paying me money anyway until another winner comes in and you hang on a for a little longer, or one day you just give up. There’s no downside for me: I’m not going to rebate you your subscription fees because there are no guarantees in this industry and I made that clear from the start.

I’m not completely poo-pooing tipster services but I’m not at all convinced of their value. I think you’re much better off learning the basics of betting and reading a form guide and then purchasing an already proven betting system and working that system.

“Give a man a fish, feed him for a day; teach him how to fish and he’ll eat for ever.”

2. Software Systems
Never ever ever hand over thousands of dollars for software systems that boast of “super duper algorithms that can pick horses with a 73% consistency and make you hundreds of thousands of dollars per year”. This is one of the worst and most unscrupulous scams going. What the developers of these systems do is go through past results and then by a process of reverse engineering come up with software which they claim is an accurate predictor of future results. They don’t work. These services are usually sold via a glossy brochure which is all promise and short on detail which is then followed up by some slick telephone salesmanship. The developers of these services are working on the premise of there’s a sucker born every minute.

If you’re ever tempted by one of these services, demand of the people that are trying to sell you the service that you speak to some current users of the service – don’t settle for a written testimonial. If they baulk at this request mumbling something about client privacy etc. hang up.

There are actually a few software solutions that do work and you’ll find that their developers will actually encourage you to speak to current users. Even in these cases, I would be wary of spending any more than $200. It’s just not necessary to spend large amounts of money to get hold of a profitable system.

3. Testimonials
Shy away from any sales letter or web page for a horse betting system that doesn’t contain testimonials. As a further refinement I would also recommend that you regard with suspicion a web page that only contains testimonials along the lines of “I’ve just received your system and I expect I’ll make a lot of money with it.”

The best testimonials are written by those who have been using the system in question for a number of months and are still happy with it.

4. Money-Back-Guarantee
Never purchase a system that doesn’t have a money-back-guarantee. Period.

5. Paper Trade
Always paper trade a system before betting with real money. Use the period or at least a portion of the period that the money-back-guarantee is valid for to “pretend” use the system. This is vital because it allows you to bet without emotion and therefore truly gauge the system’s worth.

If the paper trading proves profitable you know you have a winner and all you need to do after that is start with a small betting bank (to keep emotion at bay) and work your betting plan with discipline.

Click Here To See Which Horse Betting Systems We Do Recommend

Having respect for your bank is probably the most important aspect that separates the “investor” from the “gambler”.

To start the bank should be of such a size that if you were to lose all of it, it wouldn’t feel as if it were the end of the world. This allows you to go about working your system with the minimum of emotion. Once you’ve doubled or tripled your bank you may also want to take out the initial amount so that you are then operating solely with “won money”.

Once you have a bank you need to treat it with respect and to do this you need to implement a staking plan. We implement staking plans so that when we experience an inevitable losing sequence we do not lose all of our capital.

Regardless of the quality of our system for picking horses we will experience a series of consecutive losses from time to time. If you are prepared for these before they happen you can ride them out and wait for the series of consecutive winners to re-appear.

Below I outline a basic staking plan that can allow you to withstand up to 30 straight losses and still survive.

Absorption Staking Plan

As discussed, the first step is to establish a betting bank. Your betting bank has to be self-sustaining and once established you cannot add any more of your ‘own’ money to it. Now, use 5% of the bank to bet for a win and 5% for a place/show for all your betting from now on. Reinvest all your profits back into the bank and let it absorb the losses as well.

So whether your bank increases or decreases in size, your bets remain in proportion all the time – 5% for a win and 5% for a place/show

Example:

Betting Bank $100: Win bet $5 Place Bet $5
OR
Betting Bank $75: Win bet $3.75 Place bet $3.75 (Round them off to nearest whole number if need be)

How You Can Sustain 30 Straight Losses

With a robust racing system you shouldn’t get 9 straight losses in a row – let alone 30! However the “absorption” staking plan alolows you use to withstand up to 30 straight losses without totally breaking the bank. A betting bank of $100 will be $4.18 after the 30th loss – not completely wiped out. The greatest thing about this staking plan is that it magically minimizes the impact of losses while capitalizing tremendously on winnings. Try it and see for yourself!