The 40 Percent Rule

What is the 40 percent rule? Well for starters it is a game changer when it come to building wealth. I have read over 100 books on investing and personal finance. I do not recall coming across the 40 percent rule. I discovered the rule by reading The Millionaire Playbook, by Grant Cardone.

I got excited when I read it. It gives a different perspective on building wealth. An aggressive game plan to help you become a millionaire. One concept is saving to invest. Not saving to save. That’s where the 40% rule comes in. Save 40% of your gross income and put it into your “Sacred Accounts” until you are ready to invest it to create more income. Sacred accounts are accounts where you never touch the money.

40% of your income is some major cheese from your paycheck. That is a huge lifestyle change especially if you are living paycheck to paycheck and in major debt. This will leave you broke most of the time but it is how the wealthy build their wealth. This is how the wealthy stay… WEALTHY.

Rich Vs. Wealthy

There is a difference between rich and wealthy. You get rich before you get wealthy and as Chris Rock said, “The ball player is rich, the guy paying the ball player is wealthy.” Bruckminster Fuller said wealth is measured in time. How long can you not work while your assets produce income? Wealth produces more wealth and it can withstand economic downturns. Look how many people stayed wealthy during the past recession.

How to Do the 40 Percent Rule

First decide that you are going to start building wealth. It’s simple not easy. Take baby steps. I couldn’t save 40% in the beginning and I was already putting 20% of my income towards paying down my debts. So I started with 4%. That was manageable and I moved up gradually. Now it’s automatic and I don’t even miss it.

If you read The Richest Man in Babylon, by George S. Clauson, then you are familiar with, “A Part Of All You Earn Is Yours to Keep”. Saving 10% of your income and 20% to pay down your debts. Now just bump your saving up to 40%. As I mentioned earlier it is a game changer.

Sacred Accounts

Remember this is wealth building. You are saving so you can invest into income producing assets. This will take time. Use time wisely. Research investments that will produce more income streams. I chose real estate because it is not a fad and dependent on technology. People need to shop, eat, and live. Real estate takes care of that.

Emergency Fund

I suggest you have an emergency fund. Start with $1000. It is for emergencies only. Life always brings a crisis several times a year. But ever since I have had an emergency fund I haven’t had any financial emergencies. I have had this for several years. I have never had to dip into it. This is not an investment. It’s cash to take care of the unforeseen.

Your Income Increases

Stash away all of your bonuses, raises, and surges of income. Put that in your sacred accounts. You don’t want expenses rising to meet income. Continue to drive a wedge between expenses and income. Put all your increases into the sacred accounts.

Pull The Trigger

After some time you will have enough to start investing. I don’t know how long it will take you. I know my mentor saved for 8 years before he pulled the trigger. He turned that investment in to a $5 million dollar profit a couple of years later. He pulled the trigger after he felt confident and made sure he could get his money back. This isn’t gambling.

He got a great deal because he had access to cash. Money loves speed and when you are liquid you can pounce on opportunities. There are awesome deals everyday which people miss out on because they don’t have access to capital. This is why saving to invest is so important.

Just Start

Here is what you need to do now:

1. Open up your sacred accounts. (I have one for real estate and business investing). Chose accounts where you will not have immediate access to the money. Online savings accounts are great and pay a higher interest rates.

2. Decide how much you are going to save. Start with your first paycheck, commission, or any other income. Even if it is 1% that’s better than nothing. It’s easier if you have automatic deductions. That way you won’t miss it.

3. This is a lifelong activity. Keep going until you die.

A Review of the eLottery Syndicate and Virtual World Direct MLM Program

Even though the launch date for eLottery Syndicate and Virtual World Direct was April of 2002, it wasn’t until 2006 that they became a well known force around the internet outside of the UK. Founders Tom Brodie and Len Fitzgerald organized a unique lottery system where affiliates and players can both become winners in a booming industry. Giving people better odds to win was only a small idea to a bigger picture, it will be interesting to see just how big it becomes in the future.

Getting an Edge

If this is your first time coming across information on eLottery Syndicate and Virtual World Direct, the object is quite easy. Anyone who has ever played the lottery before has the understanding that in order to win, the odds are definitely not in your favor. This company has changed that using two different jackpots which revolve around the UK National Lotto and EuroMillions. The chances of winning is increased by unheard of amounts, which range from 700%-3600% between the two lotteries.

What Everyone Else is Saying

Testimonials are important for companies to show potential prospects that people believe in their product. The same thing goes for eLottery Syndicate and Virtual World Direct where their website offers a good amount of people who have used the system and sent in their thanks and accomplishments that have taken place over the years. One of the most interesting ones was a woman who had played for 18 months and won 29 different times. They have an area dedicated to testimonials on the home page of the website.

What Other Questions Do You Have

Most companies today offer a section to answer what they can to make everyone feel at ease when joining. The eLottery Syndicate and Virtual World Direct company offers much of the same with anything about becoming a member, playing periods, divided winning, and so many other areas they just seem to cover everything. One of the better F.A.Q. sections we have seen over the years.

Affiliate Program

Getting involved with eLottery Syndicate and Virtual World Direct on a business front is simple as well. Adjusting to how it all works may take some decent training, but once the ground rules have been understood you won’t find too many things that are this easy. You have two options with their affiliate program which is either deciding on keeping your commissions for payments or playing your own lottery games. The opportunity to play for free and keep the winnings is something they stress, but it’s not necessary.

What We Think

The main thing to understand is how big the gambling industry is on the internet. With eLottery Syndicate and Virtual World Direct there won’t be card playing, sports wagering, or anything that might be potentially illegal. This company deals in the lottery which has been around for hundreds of years and was in fact the first legalized gambling mechanism in America. Based out of the UK and covering 127 countries to date, we will be hearing much more from this company in the future. It might just be your big break in the affiliate program market.

Horse Racing Systems – The Advantages and Disadvantage of Laying Horses!

As you are most likely aware the invention of the betting exchanges around a decade ago swept in a new era of betting, especially when it came to horse races. Betting on a race became so much easier as all you needed to do was get online and get betting. But that wasn’t the only thing the exchanges brought to the gambling world, they also brought the ability to lay or as some call it the ability to be the bookmaker.

Also for those of us currently residing in the UK it meant that we had to get our heads around decimal odds. However being able to lay horses was the real big thing to come from the exchanges. It meant that we, the betting public, could now make a decision as to whether a horse will win or not and if we did not think it would win instead of backing another horse as we would normally do we could lay it off. This was a totally radical new way of betting and one that has only gotten more and more popular since it’s invention.

The best thing people say about laying horses is that it is much easier to select a loser than it is to select a winner. That is to say if there were a 10 horse race it would be much easier for you to pick a horse that will not win the race than for you to pick a horse that will win the race. As we can see here you will undoubtedly have a much higher strike rate than ever before and you have the chance to start making the big profits like the bookmakers have been doing all along.

The drawback with laying horses to lose is that you have to put up with the liability involved if the horse does win. Take for example you lay a horse at 5.5 on the exchange to make a profit of £100 and it wins you will have to pay out £450 to the person who took you up on the bet. It is probably important to point out now is the reason why betfair is so popular is because it boasts higher odds than most traditional bookmakers.

On betfair the prices are said to be a standard 20% higher than at a traditional bookmaker. This means that you are still not in the same boat as the bookmakers as they are laying things off at considerably lower odds than you are. All of this is still not including the commission charged by betfair also!

Even after all of the disadvantages I have just mentioned I still love lay betting and I will tell you why; you do not have to do it for every race! Sure the bookmaker is compelled to offer odds for every horse on every race but you don’t have to, you can pick and choose and it is this reason and this reason alone why there is money to be made in laying horses

Corn Sugar and Blood And the Rise and Fall of the Cleveland Mafia

Chapter I

“Big Ange” and the Death of the Cleveland Mafia

In 1983, Angelo Lonardo, 72, one-time Cleveland Mafia boss, turned government informant. He shocked family, friends, law enforcement officers and particularly, criminal associates with his decision which was made after being sentenced to life plus 103 years for drug and racketeering convictions. The sentence came after a monumental investigation by local, state and federal agencies had all but wiped out the Cleveland Mafia.

“Big Ange” as he was called, was the highest ranking mafioso to defect. He testified in 1985 at the Las Vegas casino “skimming” trials in Kansas City and in 1986 at the New York Mafia “ruling commission” trials. Many of the nation’s biggest mob leaders were convicted as a result of these trials.

During his testimony, Lonardo told how at age 18, he avenged his father’s murder by killing the man believed to be responsible. He further testified that after that murder, he was responsible for the killings of several of the Porrello brothers, business rivals of his father during Prohibition.

Chapter II

Birth of the Cleveland Mafia

During the late eighteen hundreds, the four Lonardo brothers and seven Porrello brothers were boyhood friends and fellow sulphur mine workers in their hometown of Licata, Sicily. They came to America in the early nineteen hundreds and eventually settled in the Woodland district of Cleveland. They remained close friends. Several of the Porrello and Lonardo brothers worked together in small businesses.

Lonardo clan leader “Big Joe” became a successful businessman and community leader in the lower Woodland Avenue area. During Prohibition, he became successful as a dealer in corn sugar which was used by bootleggers to make corn liquor. “Big Joe” provided stills and raw materials to the poor Italian district residents. They would make the booze and “Big Joe” would buy it back giving them a commission. He was respected and feared as a “padrone” or godfather. “Big Joe” became the leader of a powerful and vicious gang and was known as the corn sugar “baron.” Joe Porrello was one of his corporals.

Chapter III

The First Bloody Corner

With the advent of Prohibition, Cleveland, like other big cities, experienced a wave of bootleg-related murders. The murders of Louis Rosen, Salvatore Vella, August Rini and several others produced the same suspects, but no indictments. These suspects were members of the Lonardo gang. Several of the murders occurred at the corner of E. 25th and Woodland Ave. This intersection became known as the “bloody corner.”

By this time, Joe Porrello had left the employ of the Lonardos to start his own sugar wholesaling business.

Porrello and his six brothers pooled their money and eventually became successful corn sugar dealers headquartered in the upper Woodland Avenue area around E. 110th Street.

With small competitors, sugar dealers and bootleggers, mysteriously dying violent deaths, the Lonardos’ business flourished as they gained a near monopoly on the corn sugar business. Their main competitors were their old friends the Porrellos.

Raymond Porrello, youngest of his brothers was arrested by undercover federal agents for arranging a sale of 100 gallons of whiskey at the Porrello-owned barbershop at E. 110th and Woodland. He was sentenced to the Dayton, Oh. Workhouse.

The Porrello brothers paid the influential “Big Joe” Lonardo $5,000 to get Raymond out of prison. “Big Joe”

failed in his attempt but never returned the $5,000.

Meanwhile, Ernest Yorkell and Jack Brownstein, small-time self-proclaimed “tough guys” from Philadelphia arrived in Cleveland. Yorkell and Brownstein were shakedown artists, and their intended victims were Cleveland bootleggers, who got a chuckle out of how the two felt it necessary to explain that they were tough. Real tough guys didn’t need to tell people that they were tough. After providing Cleveland gangsters with a laugh, Yorkell and Brownstein were taken on a “one-way ride.”

Chapter IV

Corn Sugar and Blood

“Big Joe” Lonardo in 1926, now at the height of his wealth and power left for Sicily to visit his mother and

relatives. He left his closest brother and business partner John in charge.

During “Big Joe’s” six-month absence, he lost much of his $5,000 a week profits to the Porrellos who took advantage of John Lonardo’s lack of business skills and the assistance of a disgruntled Lonardo employee. “Big Joe” returned and business talks between the Porrellos and Lonardos began.

They “urged” the Porrellos to return their lost clientele.

On Oct. 13th, 1927 “Big Joe” and John Lonardo went to the Porrello barbershop to play cards and talk business with Angelo Porrello as they had been doing for the past week. As the Lonardos entered the rear room of the shop, two gunmen opened fire. Angelo Porrello ducked under a table.

Cleveland’s underworld lost its’ first boss as “Big Joe” went down with three bullets in his head. John Lonardo was shot in the chest and groin but drew his gun and managed to pursue the attackers through the barbershop. He dropped his gun in the shop but continued chasing the gunmen into the street where one of them turned, and out of bullets, struck Lonardo in the head several times with the butt of his gun. John fell unconscious and bled to death.

The Porrello brothers were arrested. Angelo was charged with the Lonardo brothers’ murders. The charges were later dropped for lack of evidence. Joe Porrello succeeded the Lonardos as corn sugar “baron” and later appointed himself “capo” of the Cleveland Mafia.

Chapter V

The Cleveland Meeting

The trail of bootleg blood continued to flow with numerous murders stemming from the Porrello-Lonardo conflict.

Lawrence Lupo, a former Lonardo bodyguard was killed after he let it be known that he wanted to take over the Lonardos’ corn sugar business.

Anthony Caruso, a butcher who saw the Lonardos’ killers escape was shot and killed. It was believed that he knew the identities of the gunmen and was going to reveal them to police.

On Dec. 5th, 1928, Joe Porrello and his lieutenant and bodyguard Sam Tilocco hosted the first known major meeting of the Mafia at Cleveland’s Hotel Statler. Many major Mafia leaders from Chicago to New York to Florida were invited. The meeting was raided before it actually began.

Joe Profaci, leader of a Brooklyn, N.Y. Mafia family was the most well-known of the gangsters arrested. Within a few hours, to the astonishment of police and court officials, Joe Porrello gathered thirty family members and friends who put up their houses as collateral for the gangsters’ bonds. Profaci was bailed out personally by Porrello. A great controversy over the validity of the bonds followed.

Several theories have been given as to why the meeting was called. First, it was thought that the gangsters, local presidents of the Unione Siciliane, an immigrant aid society infiltrated by the Mafia, were there to elect a new national president. Their previous president, Frankie Yale had been recently killed by order of Chicago’s notorious Al Capone. Second, it was believed that the meeting may have been called

to organize the highly lucrative corn sugar industry. It was also said that the men were there to “confirm” Joe Porrello as “capo” of Cleveland.

Capone, a non-Sicilian was reported to be in Cleveland for the meeting. He left soon after his arrival at the

advice of associates who said that the Sicilians did not want him there.

Chapter VI

The Second Bloody Corner

As Joe Porrello’s power and wealth grew, heirs and close associates to the Lonardo brothers grew hot for revenge.

Angelo Lonardo, “Big Joe’s” 18-year-old son along with his mother and his cousin, drove to the corner of E. 110th and Woodland, the Porrello stronghold. There Angelo sent word that his mother wanted to speak to Salvatore “Black Sam” Todaro. Todaro, now a Porrello lieutenant, had worked for Angelo’s father and was believed to be responsible for his murder. In later years it was believed that he was actually one of the gunmen.

As Todaro approached to speak with Mrs. Lonardo whom he respected, Angelo pulled out a gun and emptied it into “Black Sam’s stocky frame. Todaro crumpled to the sidewalk and died.

Angelo and his cousin disappeared for several months reportedly being hid in Chicago courtesy of Lonardo friend Al Capone. Later it was believed that Angelo spent time in California with his uncle Dominick, fourth Lonardo brother who fled west when indicted for a payroll robbery murder in 1921.

Eventually Angelo and his cousin were arrested and charged with “Black Sam’s” murder. For the first time in Cleveland’s bootleg murder history justice was served as both young men were convicted and sentenced to life. Justice although served would be shortlived as they would be released only a year and a half later after winning a new trial.

Chapter VII

Rise of the Mayfield Road Mob

On October 20th, 1929, Frank Lonardo, brother to “Big Joe” and John was shot to death while playing cards. Two theories were given for his death; that it was in revenge for the murder of “Black Sam” Todaro and, that he was killed for not paying gambling debts. Mrs. Frank Lonardo, when told of

her husband’s murder screamed, “I’ll get them. I’ll get them myself if I have to kill a whole regiment!”

By 1929, Little Italy crime boss Frank Milano had risen to power as leader of his own gang, “The Mayfield Road Mob.” Milano’s group was made up in part of remnants of the Lonardo gang and was also associated with the powerful “Cleveland Syndicate,” Morrie Kleinman, Moe Dalitz, Sam Tucker and Louis Rothkopf. The Cleveland Syndicate was responsible for most of the Canadian booze imported via Lake Erie. In later years they got into the casino business. One of the their largest and most profitable enterprises was construction of the Desert Inn Hotel/Casino in Las Vegas. Dalitz would become known as the “Godfather of Las Vegas.”

Joe Porrello admired Milano’s political organization, the East End Bi-Partisan Political Club and, seeing the value in such influence, wanted to ally himself with the group. Milano refused. Later, Porrello was reported to have affiliated himself with the newly formed 21st District Republican Club. He hoped to organize the Woodland Avenue voters as Milano was doing on Mayfield road.

Chapter VIII

More Corn Sugar and Blood

By 1930, Milano had grown quite powerful. He had gone so far as to demand a piece of the lucrative Porrello corn sugar business. On July 5th, 1930, Porrello received a phonecall from Milano who had requested a conference at his Venetian Restaurant on Mayfield Road. Sam Tilocco and Joe Porrello’s brother Raymond urged him not to go.

At about 2:00 p.m., Joe Porrello and Sam Tilocco arrived at Milano’s restaurant and speakeasy. Porrello, Tilocco, and Frank Milano sat down in the restaurant and discussed business. Several of Milano’s henchmen sat nearby. The atmosphere was tense as Porrello refused to accede to Milano’s demands.

Porrello reached into his pocket for his watch to check the time. Two of Milano’s men, possibly believing that Porrello was reaching for his gun opened fire. Porrello died instantly woth three bullets in his head Simultaneously, a third member of Milano’s gang fired at Tilocco who was struck three times but managed to stagger out the door toward his new Cadillac. He fell to the ground as the gunmen pursued him, finishing him off with another six bullets.

Frank Milano and several of his restaurant employees were arrested but only charged with being suspicious persons. The gunmen were never actually identified. Only one witness was present in the saloon when the shooting started. He was Frank Joiner, a slot machine distributor whose only testimony was that he “thought” he saw Frank Milano in the restaurant during the murders.

Cleveland’s aggressive and outspoken Safety Director Edwin Barry, frustrated by the continually rising number of bootleg murders, ordered all known sugar warehouses to be padlocked. He ordered a policeman to be detailed at each one to make sure that no sugar was brought in or removed.

Meanwhile, the six Porrello brothers donned black silk shirts and ties and buried their most successful brother. The showy double gangster funeral was one the largest Cleveland had ever seen. Two bands and thirty-three cars overloaded with flowers led the procession of the slain don and his bodyguard. Over two hundred fifty automobiles containing family and friends followed. Thousands of mourners and curious on-lookers lined the sidewalks.

Cleveland’s underworld was tense with rumors of imminent warfare. Porrello brother Vincente-James spoke openly of wiping out everyone responsible for his brother’s murder.

Three weeks after his brother’s murder, Jim Porrello still wore a black shirt as he entered the I & A grocery and meat market at E. 110th Street and Woodland. As he picked out lamb chops at the meat counter, a Ford touring car, its’ curtains tightly drawn, cruised slowly past the store. A couple of shotguns poked out and two lasts of buckshot were fired, one through the front window of the store and one through the front screen door.

The amateur gunmen got lucky. Two pellets found the back of Porrello’s head and entered his brain. He was rushed to the hospital.

Chapter IX

“I think maybe they’ll kill all us Porrellos”

“I think maybe they’ll kill all us Porrellos. I think maybe they will kill all of us except Rosario. They can’t

kill him – he’s in jail.” Thus Ottavio Porrello grimly but calmly predicted the probable fate of he and his brothers as he waited outside Jim’s hospital room. Jim Porrello died at 5:55 p.m.

Two local petty gangsters were arrested and charged with murder. One was discharged by directed verdict and the other was acquitted. Like almost all of Cleveland’s bootleg related murders, the killers never saw justice.

About this time, it was rumored that the Porrello brothers were marked for extermination. The surviving

brothers went into hiding. Raymond, known for his cocky attitude and hot temper spoke like his brother James did of seeking revenge. Raymond was smarter though, he took active measures to protect himself.

On August 15th, 1930, three weeks after James Porrello’s murder, Raymond Porrello’s house was leveled in a violent explosion. He was not home at the time since he had taken his family and abandoned his home in anticipation of the attack.

Four days later Frank Alessi, a witness to the murder of “Big Joe” Lonardo’s brother Frank, was gunned down. From his death bed, he identified Frank Brancato as his assailant. Brancato was known mainly as a Lonardo supporter and suspect in several murders. Brancato was acquitted of Alessi’s murder.

Chapter X

In March of 1931, Rosario Porrello was paroled from Ohio’s London Prison Farm where he had served one year for carrying a gun in his car.

In mid-1931, National Mafia “capo di tutti capi” (boss of all bosses) Salvatore Maranzano was killed. His murder set in motion the formation of the first Mafia National Ruling Commission created to stop the numerous murders resulting from conflicts between and within Mafia families and to promote application of modern business practices to crime.

Charles “Lucky” Luciano was the main developer of the commission and was named chairman. Also named to the commission were Al Capone of Chicago, Joe Profaci of Brooklyn and Frank Milano of Cleveland.

In Dec. of 1931, Angelo Lonardo and his cousin Dominic Suspirato were released from prison after being acquitted of “Black Sam” Todaro’s murder during a second trial. Because he had avenged his father’s death and (for the most part) gotten away with it, he became a respected member of Frank Milano’s Mayfield Road Mob.

The thirst for revenge had not been satisfied for members of the Lonardo family. It was generally believed

that “Black Sam” Todaro instigated and perhaps took part in the murders of “Big Joe” and John Lonardo. However it was believed by members of the Lonardo family that the remaining Porrello brothers, particularly the volatile John and Raymond and eldest brother Rosario still posed a threat because of

the murders of Joe and James Porrello.

On Feb. 25th, 1932 Raymond Porrello, his brother Rosario and their bodyguard Dominic Gulino (known also by several aliases) were playing cards near E. 110th and Woodland Avenue. The front door burst open and in a hail of bullets the Porrello brothers, their bodyguard and a bystander went down. The Porrellos died at the scene. Gulino died a couple of hours later. The bystander eventually recovered from his

wounds.

Several hours after the murders, Frank Brancato, with a bullet in his stomach, dragged himself into St. John’s hospital on Cleveland’s west side. He claimed he was shot in a street fight on the west side. A few days later, tests on the bullet taken from Brancato revealed that it came from a gun found at the Porrello brothers murder scene. Although never convicted of either of the murders, Brancato was convicted of perjury for lying to a Grand Jury about his whereabouts during the murder. He served four years after a one to ten year sentence was commuted by Governor Martin L. Davey.

In 1933, Prohibition was repealed. The bootleg murders mostly stopped as organized crime moved into other enterprises. Angelo Lonardo continued his crime career as a respected member of the Cleveland family eventually rising through the ranks to run the northeast Ohio rackets in 1980.

In early 1933, in a sequel to the tragedy of the large Porrello family, Rosario’s son Angelo, 21, was killed in a fight over a pool game in Buffalo. It was said that he and his Uncle John were there trying to muscle in on the corn liquor business.

******

The Definitive Art of Bookmaking and Odds Compiling

To appreciate the Job of the Bookmaker we must first dissect the methods and criteria to which he lends himself.

He must create or compile the Odds of each and every horse race on every race card. Every single day.

This is a very difficult Job and mistakes are often made.

So in order to gain an edge when betting we need to find any faults or mistakes that may occur during the compiling process.

The complete process of compiling will be known as creating “The Book”.

This will be addressed in the following 9 stages.

Understanding the numbers is vital to anyone serious about betting to win!

This will be outlined in the following nine stages-

The Odds

The Fractions

The Percentages

The Decimals

The probability

The value

The Margins

The predicted chance of success

Compiling the Book

Stage 1

Let us start with the Odds

There are two types of odds

Absolute odds and indefinite odds

To distinguish between the two-

Absolute odds are the toss of a coin is 50/50 or Evens

Therefore you have a 50% chance of it being Heads and a 50% chance of it being Tails

Now if I was to offer you 5/1 for it being Heads this would be known as indefinite odds, an enticer or a teaser if you like!

Basically all bookmakers offer indefinite odds that are unbalanced and designed to entice

This is where they incorporate the Margin/the over round / the over broke or spread

Two Sides two every coin

For every bet there is a need for two parties to have different opinions of a betting outcome

For the purpose of this exercise these will be known as

Party A. (the Bookmaker/layer. Or he who offers the odds)

And

Party B. (the Backer/the bettor or he who takes the odds)

There are also two sides to the actual odds

These are known as odds on and odds against

What this basically means is that if party A Offers 2/1 and Party B. Accepts those odds

Then

Party A will have odds of 1/ 2 and Party B will have odds of 2/ 1

This works with “odds on” equations to.

For example-

The- “odds on” Wager offered by party A. Maybe 1/6

In this case party B will take the odds of 1/6 and party A would secure himself odds of 6/1 + His/hers profit Margin.

(This profit Margin is known as the over round. The over broke. The spread or just profit margin)

Now for a bookmaker to guarantee himself overall profit he must apply a simple rule known as “odds coupling.

Odds coupling

This is always applied when compiling a book for any individual event

So realistically the odds on offer are indefinite, you would not get 1/3 for party B opposing 3/1 for party A

Basically “Odds coupling” is when the odds are slightly disproportionate to each other when compiling both sides of probability to a bet

This can easily be recognised when betting on betting exchanges where the layside may offer 5.4 and the back side may offer 4.9

(Not the same/disproportioned odds)

What this means is that if party B is getting 4/ 1 then party B must adjust his odds when compiling to incorporate a small percentage of profit for his/her book ( The over round )

This is where we need to convert the odds from fractions into percentages and then back to fractions again.

So let us say we have odds of 3/1

This tells us that there are 4 parts to this bet (3/1 is the same as 3+1 when betting)

Now what this tells us is that Party A has 3 chances in 4 of winning

And party B only has 1 chance in 4 of winning

Therefore if we convert these odds to percentages

Party A has a 75% chance of winning opposed to Party B who only has a 25% chance of winning)

Now to ensure the bookmaker or party A incorporates is over round or profit margin he must at least adjust his percentage to 76% this would give him a 1% Margin on the Spread or 76%/25%

So effectively odds of 3/1 will not be coupled with 1/ 3 when making the book. Instead the odds may appear more like this

Party B would use the odds of 2/7 instead of 1/3 because this will allow him a 77.52% profit ratio if he wins

And party B on the other side of the odds would be 3/1 allowing him a probability of 25% as a winning chance according to the odds on offer to him

As you can see Party A has incorporated this margin on just one horse if he did this in a ten horse race he would have created an over round of 25.2% this is made up of the odd 2.52% he has added to each selection by disproportioning the opposing odds

Therefore the definition of odds coupling is to disproportionate opposing odds from the layers side Party A.

Opposed to proportioned odds on the backers side /Party B

Stage 2

The Fractions

The Fractions are quite simply percentages and Decimals written in a different form

Again there are two sides to a bet

Party A.The Bookmaker/layer

Party B. The backer

If the odds were absolute or real, a table of odds would look something like this

Bookmaker Backer

1/3 3/1

75% chance of winning 25% chance of winning

In an odd’s on wager the tables would be the other way round

Bookmaker Backer

3/1 1/3

25% chance of winning 75% chance of winning

Stage 3

The percentages

The percentages are the same as Fractions and Decimals also written in a different form

Bookmaker Backer

75% chance of winning 25% chance of winning

1/3 3/1

Etc…

Stage 4

The Decimals

Decimal odds are a simpler way of working out the odds and don’t give you a headache every time you want to place a bet.

Do you know the difference between 2/9 and 4/7?

No? Well, not many people do. But with decimals you’d know instantly.

So, how do decimal odds work? Well, if the decimal odds are 4.4 and you place a back bet of £10 and win, your total return is £10 x 4.4 = £44.(less any commissions that may be added by the betting exchange or bookmaker)

This is equivalent to a traditional price of 7/2

The key part to remember is that decimal odds always include the unit stake – thus every price you see on Betfair will be >1.

Example-

Fractional odds represent the profit – 5/1 means you will win five pounds for every one pound staked. And odds of 5/1 will shown as 5+1 the (unit stake) thus showing 6.0 as the equivalent odds

Likewise odds of 7/2 are calculated as follows 7 divided by 2=3.5 plus the unit stake >1 now equates to 4.5

So 7/2 is 3.5 + 1 which equals 4.5

This may take some time to come to terms with but in the meantime you can go to the “Betfair” website and use there odds converter tool absolutely free

You’ll be up to par in no time!

Also once you can calculate fractions to decimals it makes working out predicted percentage much easier

Example-

Odds of 5/2 are converted to percentages as follows

5 divided by 2 =2.5

Now divide into 100 (100%)

This equals 100/2.5 = 40

Therefore 5/2 represents a predicted 40% of that bet winning if the odds are absolute or real

Stage 5

The Probabilities

This is the biggest illusion when betting on horse racing

Why?

Firstly every horse in a race as some chance of winning

Therefore we must assume that all horses start off on a level playing field and thereafter a book is compiled by the odds compiler or bookmaker to create an in-balance

Some selections will be judged to have a greater chance and some to have a lesser chance of winning and therefore odds will fluctuate across the book

Shorter odds will be offered to selections that are deemed to be a better choice when predicting a winner

And longer odds for those expected to have less chance of winning

This is where the backer can obtain value in there betting!

Stage 6

Value

Definition: Obtaining a better price from the odds on offer than are predicted to be correct

In simple terms if the odd on offer are 3/1 then it is predicted that the selection has a 25% chance of winning

But what if the absolute or real chance of winning was 40%

Then the odds should actually be 5/2

(5 divided by 2 =2.5) (100% divided by 2.5 =40%)

If this was the case you would achieve odds of 3/1 which would return 3 times the stake placed from a bet that should only be returning 2.5 times your stake at 5/2

Also you have got higher odds for a 40% probability of winning opposed to the odds compilers prediction being that the selection of 3/1 should only give a winning chance of 25%

So therefore in this case providing the selection goes on to win

You would have gained some value!

Stage 7

The Margins

When a backer chooses his or hers selections he/she usually does this by reading or studying various items of form

Or a system based on some criteria

Or a tipster

What he/she often fails to account for when placing bets are-

The over round/over broke/ profit margins that are incorporated in the odds on offer or the spread as it is known

The following articles and example will simplify the structure of the book to enable the understanding of absolute or real percentages of the “Book”

Stage 8

The predicted chance of success

A great way evaluate your predicted chance of achieving a winning outcome is to use the following rule.

The rule is-

“Whatever you think, think the opposite”

Example of this rule is as follows-

If you are offered odds of 3/1 or 4.0 this means that you have a 1 in 4 chance of success provided that the odds are absolute

This equates to you having a 25% chance of success.

Apply the rule and. Think the opposite!

This means you have a 75% chance of losing

(which does not include the over round margin or spread)

All of a sudden the bet does not look so appealing, this is where we have to use our own judgement based on fact, form and analysis to allow you to decide whether or not you think the chance of winning is greater than predicted, for that selection

Stage 9

Compiling and creating “the book”

As a bookmaker.A knowledge of percentages is vital and for many learning these numbers will become second nature

In order for a bookmaker to secure a profit from the book the percentages for all runners combined must together equate to a number greater than 100%

Occasionally a bookmaker will compile or adjust odds to make the book under round or over broke in order to attract business (All runners combined equal less than 100%)

In doing so he puts is book at risk of potentially making a loss

However in most circumstance the book is over round

Example of this is shown in the following race compilation-

This is taken from a real race from Friday October 7th 2011

Wolverhampton 18.10

The 32 RedPoker Median Auction Stake

Odds for each selection

Selection

Odds converted to percentage

True Odds all 9/1

True chance of winning

100% divide by 9+1=10%

Evens

Chelsea Mick

50%

9/1 true odds

10% average chance of winning

3/1

Oblitereight

25%

13/2

Mr Fong

13.30%

7/1

Elmora

12.50%

10/1

Hi There

9.10%

12/1

Statement of Intent

7.70%

25/1

Kings Future

3.80%

25/1

Path Finder

3.80%

25/1

The Cornish Cowboy

3.80%

50/1

Tresabella

2.00%

Totals=131%

True totals are ten horses with and average 10% per horse equal to-

100%

131% – 100% = 31% as the Over round or Spread or Profit Margin

Betting forecast- Evs Chelsea Mick, 3/1 Oblitereight, 13/2 Mr Fong, 7/1 Elmora, 10/1 Hi There, 12/1 Statementofintent, 25/1 King’s Future, 25/1 Path Finder, 25/1 Thecornishcowboy, 50/1 Tresabella

Thus- the over round here is 31% is achieved by the bookmaker for this race

In theory a backer who staked according to the percentage on every selection would stake 131 units. However whatever horse wins will only result in 100 units being returned. Therefore the bookmaker would make 31 units profit or 31%

This is generally how a book would look with an over round included in the Odds or prices!