Are you handicapping horse races and trying to make a profit from your bets?  You’re not alone.  As the economy worsens, more and more people are turning to wagering on races to supplement their incomes.  Obviously, this is a very risky move and you should really think it through before trying it.

If you must bet on horse races, however, there are certain bets and decisions that you can avoid that will improve your chances of winning.  First of all, do you know what the number one, biggest mistake is that people make when handicapping horse races?  Why do people lose money every day at the races?

The answer is that they fail to plan and then follow through on their plan.  That may sound like a simplistic and glib explanation, so let me expand on that idea.  When I say they fail to plan I mean that they do not sit down and write down their goals and what steps they will take to achieve them.  Not only do they not have a written plan, but they don’t follow  a system.  Can you think of any other business or method of investing that you can succeed at without a plan?  Of course not.

Go to a bank and ask for a business loan and see what they ask you.  The first thing they will say is, “Let’s see your business plan.”  If I went to you for a loan and told you I was going to pay it back off the income from a doughnut shop, you would want some specifics, wouldn’t you?  You’d ask me what I knew about doughnuts and where the shop would be, among other things.

Though this is all common sense, thousands of people go to the race track every day with no system and no plan.  They make bad decisions and react emotionally.  They manage money poorly and when they are broke, they wonder why.  Don’t make the same mistakes.  Make a plan.  Here’s how.

Write down your financial goal.  An example would be, I want to make $500 per week.  Secondly, start thinking about how you will reach that goal.  What are your assets or tools.  For instance, I have a bankroll of $5,000.  I have read several good handicapping books and have learned several systems.  I have a money management plan similar to Kelly betting.

Be specific.  Go into detail about the day to day operation of your enterprise.  How will you choose horses to bet on?  How will you apportion your money?  How will you deal with problems?  Write each answer to these questions on a piece of paper or in a notebook and keep it with you.  Read it daily and update and revise it once a month.

If you follow through on this course, you will be ahead of 99% of the people you see at the races every day.  There are no guarantees when you are handicapping horse races, but I can guarantee you this, if you fail to plan you will fail.