In order to be successful at sports betting, it’s important to have good money management skills. These set of skills are more commonly referred to as bankroll management. In this context, the term bankroll simply refers to an amount of money that’s allocated for betting.
One of the biggest mistakes that most aspiring bettors make is ignoring bankroll management altogether. Even recreational gamblers should ideally have at least some plan for how to manage their money when betting. This is a necessity for anyone serious about making consistent profits.
The purpose of this page is to emphasize the importance of bankroll management, in hopes that you will take it seriously. It also provides some advice for how to manage your money properly, and gives details on the various staking plans available to help with this.
By taking into consideration all the information we have provided for you and by following all the advice we offer, you will significantly increase your chances of making a profit.
Bankroll management is actually very simple, in theory at least. Its purpose is to reduce your chances of going bust, and to ensure that you’re able to withstand runs of bad luck without running out of money. Hopefully, this will increase your chances of winning money, as you’ll have the time to develop and adjust your strategies.
The basic idea of bankroll management is to define and follow a set of rules that determine how much to stake on any given wager. These rules should be based on your overall budget, the way you bet, and your betting goals. We go into detail about how to establish these rules later on.
First, though, we should point out that good bankroll management requires strong discipline. Learning how to manage your money correctly is one thing, but actually doing it is more challenging. There’s little benefit in being disciplined 90% of the time if you lose self-control the other 10% of the time. The damage can still be done.
By setting a few rules about how much you’re going to stake, it becomes easier to maintain self-control. Just make sure that you do stick to them all of the time, even when it’s tempting not to.
Advice for Managing Your Money
Although there’s no single, correct way to manage your bankroll, there are some guidelines that need to be followed.
The first step is to set aside a sum of money that can specifically be used for betting purposes. This needs to be something you can afford, but the actual amount is up to your discretion. This money should be used exclusively for betting, and it needs to be something you’re willing to live without if you do happen to lose it all. In a best case scenario, these funds will be separated from your day to day funds; although this isn’t necessary as long as you’re keeping accurate records of how much you’re winning and losing.
Once you’ve decided the size of your bankroll, the next step is to decide the size of what’s known as a base betting unit. This is simply the amount you feel comfortable staking on any given wager. The most common suggestion is to choose an amount that’s between 1-5% of your overall bankroll.
We typically advise against going beyond 2%. You should only go higher than this if you are comfortable with the increased level of risk or if you tend to back mostly big favorites. You should definitely be at 1% (or even lower) if you tend to back longshots. This amount should vary depending on what your betting goals are. For example, if your plan is to aggressively grow a bankroll as quickly as possible, a higher percentage might be the better option.
The next decision regards which staking plan to use. The term staking plan is just another way to describe the set of rules regarding how much to stake. These plans can be broadly divided into two distinct categories; fixed plans and variable plans.Fixed Staking Plans
A fixed staking plan is the best option for beginners in our opinion, and it’s also the simplest. There are two main types of fixed staking plan, and they are as follows.
Level Staking
Percentage Staking
With level staking, you stake the exact same amount for every wager. This would usually be one single betting unit, which is calculated based on your starting bankroll.
Example
Your starting bankroll is $1,000, and you set the size of a betting unit at 2%. 2% of $1,000 is $20, which becomes the amount you stake on ALL wagers.
The principle is largely the same for percentage staking. You would again stake a single betting unit for each wager, but this would be calculated based on your current bankroll.
Example
Your starting bankroll is $1,000, and you set the size of a betting unit at 3%. 3% of $1,000 is $30, so this becomes the amount you stake on your first wager. If it loses, your bankroll would now be $970. So for the next wager you would stake 3% of $970. Variable Staking Plans
Variable staking plans are more complicated, but they are worth considering. With these, you adjust the number of units staked on each wager based on the following criteria.
Confidence Level
Potential Return
Previous Results
Expected Value
For example, with a staking plan based on confidence level you might stake anywhere from half a betting unit (when you’re not confident about a wager’s chance of success) up to three betting units (when you’re very confident about a wager’s chance of success). With a staking plan based on potential return, your stakes would vary depending on the odds of a wager. Higher odds would mean lower stakes, and lower odds would mean higher stakes. The aim would basically be to win roughly the same amount each time.
Staking plans based on previous results involve increasing or decreasing stakes depending on whether previous wagers have won or lost. Increasing your stakes is an attempt to recover previous losses, while decreasing your stake is an attempt to accelerate bankroll growth. We don’t like either approach and suggest avoiding these types of plans.
There’s a specific staking plan that’s most widely used for betting on expected, and it’s known as the Kelly Criterion. It uses a specific formula to calculate your stakes for each wager. Even though many bettors use this plan, there are still a great deal of betters that believe it serves no real purpose. For more information on this, please read our explanation of how to use the Kelly Criterion staking plan.
Summary
As you can see, managing a betting bankroll doesn’t have to be particularly complicated. You just have to establish a clear set of rules for determining how much to stake on each wager, and then stick to those rules. That takes discipline, but with the right level of willpower it can become second nature.
If you do stick to the rules and practice good bankroll management, then you should hopefully be able to avoid going bust. By only ever staking a percentage of the money you have to bet with, you should be able to ride out any bad losing streaks. We recommend making reckless bets to chase losses, and resist the temptation to increase stakes when things are going well.
Good bankroll management in conjunction with the ability to make good selections provides you with the best possible chance of making a profit in the long run.
From.. gamblingsites....
No comments:
Post a Comment