This is the most basic principle in investing “buy low, sell high” and is the cornerstone that I apply to daily handicapping sports.  Put simply, by buying when cheap and selling when expensive you will grow your return on investment.  This sounds easy right? Well you have to know when is the right time to react.  So how do you determine whether to buy low on a team or sell high.

Everyday is a new day in the world of sports and with each new day comes new opportunities.  What I like to look for each day is what team is being overvalued and what team is being undervalued in the number presented by oddsmakers.

What makes a team overvalued (stock high)/undervalued (stock low)?

• who the team is playing
• the team is on a winning/losing streak
• what their previous games result was
• their against the spread winning/losing trends
• media spotlight on one team is greater than the other
• home stadium/playing on the road

These all have an impact on the line of a game and what I like to do is be patient and let the market react before I do.  Watching the games daily you will help acquire a feel for what to expect the next day in an opening line.  For how the general public reacts to what is happening each night in sports is the main form I use is social media.  Social media plays a big part in how a feeling is felt about a certain team/player and that can be taken in as information to you how you might think a certain line will react the next game.  While the market reacts each day, watching Sportscenter, reading online sport sites, reading blogs, reading sport betting forums and using social media to your advantage are many forms of media and webpages to go through daily to get a taste of how the market is reacting each day to the previous results of a team/player(s).  Information is power and use it to acquire a feel for how the sports market is responding to a team that is being overvalued or undervalued by oddsmakers.  A teams stock that is high has a high percentage of public backers and a teams stock that is low generally has a less than 50% of public backers.  When analyzing the sports market daily never forget the most simple rule in investing and that’s “buy low, sell high”.  These opportunities might not come up everyday, the key is to be patient let the situation come to you then react and keep your return on investments high.