The Dow Jones Industrial Average is the most important of American stock exchanges. Betting on the Dow Jones can make you rich quickly, but due to its wildly volatile nature, you could also lose your shirt if you’re not careful.
I’ll explain how to bet on the Dow Jones online, the different bets you can make, what makes the market move, and why late 2020 and early 2021 is the ideal time to bet on the Dow Jones stock market.
How to Bet on the Dow Jones Market
There are a few different ways to bet on the Dow Jones. Some of them require a reasonable level of financial knowledge, and others are as quick and easy as placing a sports bet. I’ll focus on the easy and convenient bets in this section.
The first thing you’ll need is an account at BetOnline.ag. When you have one, you’ll find a dedicated “financials” section in the sportsbook.
When you navigate to this section, the different DJIA betting options appear on the screen.
BetOnline.ag offers two prop bets on the market.
- You can bet on the final digit (including decimals) of the Dow Jones each day it trades.
- You can bet on whether the final digit will be odd or even.
Check out the different Dow Jones wagers you can make.
As you can see, guessing the final digit has odds of +750. Therefore, a $10 wager could lead to an $85 payout. If you think it’s too unlikely that you’ll win this bet, you could wager on whether the final digit will be odd/even. With odds of -105, that same $10 bet could turn into $19.52. It’s essentially a 50/50 chance to almost double your money.
What I like about betting on the Dow Jones this way is:
- It’s quick, easy, and convenient.
- No special stock market knowledge is required.
- ag is a safe, trusted betting site.
What I’m not so keen on with this sort of betting is:
- There are limited betting options.
- Picking the closing digit won’t be easy.
- You can make much bigger profits trading the DJIA directly.
Like I said before, this is a great way for stock market beginners to bet on the Dow Jones without a steep learning curve or a bunch of hoops to jump through. That’s the main reason to give it a shot.
Dow Jones Betting – Real Money Action
Once you’ve had your fill of betting on final digits, and if you develop an interest in betting on the stock market, there are other ways to get involved. I’ll touch briefly on some of them here.
Dow Jones Options Trading
Options are a form of leveraged stock market betting available to American gamblers and some others from around the world.
Options are traded as contracts, and they allow you to control a certain number of stocks in a company until the expiry of that contract. A $500 options contract might allow you to exercise the option to buy or sell a stock at today’s price in 12 months from now.
Options are a great way for Americans to bet on the Dow Jones and other stock markets. They’re available for almost all public companies and even the stock indexes themselves. You can buy “call options” to bet that prices will go up or “put options” to bet prices will fall. However, I strongly advise you to stay away from put options unless you’re an options betting expert.
Options are a popular way to gamble on the Dow Jones stock market.
Dow Jones Betting – Stock Trading
If you find the stuff about stock options above perplexing, don’t worry, you don’t have to use them. They’re just a way to bet on the Dow Jones with leverage for maximum returns. You can also pass on options and trade stocks directly through a brokerage account.
This is a much simpler and easier way to gamble on the Dow Jones and other stock indexes. You can just buy stocks in your favorite companies directly and hold them until you’re ready to cash out.
There are even Exchange Traded Funds and mutual funds that allow you to buy a piece of every company on the index. However, we’re now getting into investing rather than Dow Jones betting, so that’s a topic for another day.
Why Now Is the Time to Bet on the Stock Markets
At any point in time, you’ll always get economic doomers warning you that the stock market is going to crash and economic hell is going to break loose. I’ll wager any of them that it won’t happen anytime soon and that the Dow Jones Industrial Average will continue to reach new highs over the next few years, albeit with a few dips and corrections along the way.
Because I’ve been betting on stocks for two decades, and I feel like I have learned a few things about how the stock market works. Here’s what I’ll bet happens.
- Joe Biden will become President of the United States on January 20th. President Trump has lost the majority of his court cases and is unlikely to win the rest. Despite Trump’s brand as the businessman extraordinaire, you can’t forget that Biden has experience in this area. He was one of the architects of the Recovery Act that saw the Dow Jones rise from a bottom of nearly 7,000 after the financial crash to over 18,000 points when his term was finished.
- The Federal Reserve will continue to print money, and likely at a faster pace under a more liberal Biden presidency. Massive fiscal stimulus is coming, and the Dow Jones will respond positively to it. Whatever the long-term consequences are, the Dow Jones is going to pump in the next few years.
- It looks like there’s light at the end of the tunnel with three vaccine candidates that have 90%+ effectiveness. The global economy is about to reopen and boom in 2021. Some of the biggest winners will be companies listed on the Dow Jones.
All of these things give me confidence that a Dow Jones bull market is going to occur. All the other stock exchanges will rise, too. You could bet on the NASDAQ or the S&P 500, and you’ll make money, too. Now is the time to place your bets and reap the rewards.
DJIA Betting – Conclusion
If you’re new to betting on stock markets, my advice is to start with the bet outlined above.
In any case, now is the time to get in on the action. A slow but steady financial recovery is likely upon us. Don’t let the stock market doomers convince you otherwise. I wish you good luck betting on the Dow Jones this year!