It’s a horse race

Humans are a strange species. soon after we stopped dragging our knuckles and started walking upright, we have found pleasure jumping on the back of some other animal and racing to victory. From elephants to ostriches, if the beast was large enough to carry a human, we used it for sport racing and gambling.

Native to Africa, ostriches were raced in sub-saharan countries. The earliest known tradition of elephant racing is from Vietnam. Camel racing has been practiced as a traditional sport at festivals and family events since the 7th century in the Arabian Peninsula.

The “Sports of Kings” existed in England at least as early as 1174. Today, Thoroughbred horseracing is big business. Each year legal betting on horse races well exceeds $100 billion in over 50 countries. Australia accounts for 0.33 percent of total global population and almost 1.5 percent to total global horse racing wagers. All modern Thoroughbreds trace their lineage back to three stallions imported into England from the Middle East in the late 17th century.

“Tapit,” foaled in 2001, is an American Thoroughbred racehorse that won three of his six races, earning $557,300 in prize money. The horse was retired to stud in 2005 for a stud fee of $15,000. But his foals have been incredibly talented, earning over $148 million in prize money since 2008.

“He’s got very strong libido and fertility, and everyone knows who’s the boss down in the breeding shed,” says the director of sales at the Lexington, Ky. farm where the horse resides. Tapit has consistently earned over $35 million a year in stud fees and probably will do so for another 15 years.

While most seven-year-old boys were keeping track of their favorite NBA player’s stats, I was interested in “following the ponies.” That is probably a significant part of who

At the racetrack you have two choices. You can listen to the hot tips or do your own research. It’s the same for the stock market. Research works better in the long run. Obviously, it is not how many winners you pick but how much you make on the good ones and how little you lose on the bad selections.

I am today since I switched to the stock market at age 13. Many of the strategies for betting on the horses and buying stocks are the same.

At the racetrack you have two choices. You can listen to the hot tips or do your own research. Same for the stock market. Research works better in the long run. Obviously, it is not how many winners you pick but how much you make on the good ones and how little you lose on the bad selections. You have undoubtedly heard those suggestions before. Here is a couple you may not have thought of.

The person on top of the horse is almost as important as the horse itself. Stocks have “official” or “unofficial” jockeys too. Every seasoned trader and investor knows to watch for which firm is buying or selling. Some brokers cater to many smaller retail investors; some to the big boys and girls. Some brokers trade primarily for their—and special clients’— own accounts.

Further, if you know that broker XZY bought a lot of shares at P10, you should watch if that same broker is selling out for profit at P12/P14. All this matters.

At the racetrack, you must “Check the Horse’s History.” You may think that technical analysis is all nonsense. No problem. But you damn well better know if a stock is coming down from a high, up from a low, and what the current trend is.

There is one horrible aspect of horse race betting. Once the race starts, there is nothing you can do. You and your money are locked in and committed to the end of the race. Wouldn’t it be a Divine Gift if somewhere along the track when your horse is losing that you could call “time out” and get at least part of your wager back? That is what makes the stock market the best short-term investment in the world. It is called Instant Liquidity.

The number one rule for betting on horses and buying stocks is simple. If you do not know what you are doing and are too lazy to learn, go buy Lotto tickets.