Yes, using your head is as important to this sport we call betting as to that of real life. And in betting, using your head means betting with your head, and not with your heart.
For example, you're from Baltimore and you like the Baltimore Ravens. The Ravens have a game against the defending Super Bowl champions, New England Patriots, and you very well know that the Ravens will be most definitely creamed on this one.
Being the true Baltimore local that you are, you bet on the Ravens.
What happens next is almost automatic. Another win for the Patriots and another month's pay gone to the bookies.
A classic example of people betting with their hearts was the fight between Muhammed Ali and Larry Holmes. Larry Holmes was the younger and stronger fighter, yet to taste defeat and he was going up against an old Muhammed Ali, way past his prime.
Common knowledge will tell you that Larry Holmes should be the odds-on favorite to win. It turns out that Holmes was only an 8-5 favorite over Ali.