For the past twenty five years I have been avid supporter of all 3 businesses – casinos, bookies and marketplace makers. And by supporter, I indicate my difficult gained cash has gone to support these firms.
At some level it happened to me that these company models are connected and that link turned the obtain to a breakthrough in my performance and profitability.
Let us search at these company types:
Casinos make income since every single sport they offer has a constructed in statistical benefit for the casino. That edge can be very small (reduced than two percent), but above time and the tens of millions of bets put by on line casino patrons, that edge earns the on line casino adequate income to create elaborate accommodations, fountains, large pyramids, towers and replicas of well-known landmarks.
Typically, a bookie is an expert in the area in which he or she offers bets. Bookies have to be incredibly experienced, or they will not be capable to turn a earnings.
The goal of a bookie is to set up a point distribute which allows him or her to income no subject what the result of an celebration is. This requires a constant adjustment of the odds, and in some instances a bookie might even get bets from yet another bookie to create a wanted unfold.
At any time consider about how you can just phone your broker (or go online) and in a moment’s observe sell 1,000 shares of Cisco? I mean, who is buying individuals shares? How does that really perform?
Effectively, a marketplace maker is to thank for this. There are people, market place makers, that are willing to be there, standing by at all occasions, to acquire or promise to promote any given inventory. They will get whatsoever you are promoting, or they will go out and get whatsoever you want to acquire. They are the grease in the wheels of the industry.
What is interesting, from our viewpoint, is HOW Market place MAKERS MAKE THEIR Money!
Look, they are having a danger with every trade. Suppose they buy your one,000 shares of Cisco that you want to dump and before they can market it the price tag drops? They are jeopardizing their assets with each trade they facilitate.
How they counter this, how they earnings, is they include a tiny some thing to each and every trade. They buy for a little much less than the recent price tag and the offer for a couple of cents much more than the likely price. They don’t require a whole lot of mark up. Just a handful of pennies on possibly aspect – but presented the volume of what they do, they wind up in advance.
Turnkey Solution Not only is their threat mitigated, but the amount they include places the odds on their facet. They are not taking part in for the inventory to rise or tumble at all. They just want there to be quantity!
THE MILLION Dollar Connection
Can you see it? All 3 make their cash by guaranteeing that THEY have the statistical benefit at all moments.
None of them require to (or search to) earn big. No, their cash arrives from the EDGE that they set up Just before any bets are positioned. In truth, they are the types
Having the bets, not Making the bets.
All they want is a tiny edge and they know, mathematically that they are likely to come out ahead.
So what of it? Very good for them. What does that have to do with us?
Nicely, what if I informed you there was a way to acquire the identical statistical gain that casinos, bookies and market makers have? What if I told you that there was a way for you to stop Producing trades and start off Taking trades (just like a on line casino, bookie and marketplace maker)?
I want you to know that there is. You can trade like a bookie. You can trade like a casino. You can use market makers to be a market maker.