Introduction to Betting Money Management
In the end of my previous post I mentioned the importance of your betting bankroll and your betting bankroll management, so let's dig deeper into the topic.
You can be a great bettor, but the reality is that no one is ever able to make consistent profits if you don't understand the importance of proper betting bankroll management. For example, if you bet everything you have on every game, it only takes one game to bankrupt you. While this example can be extreme, some people do make this mistake, especially if they are on tilt from previous losses.
Money management is one of the most important element in your betting, if not THE most important element. One could say that the way you manage your bankroll decides whether you investing or independent of what you think you're doing, actually gambling.
So besides the suggestion in my other post that as a general rule you usually shouldn't use more than 2% of your bankroll on any given bet, what else to should you consider?
While in the beginning you don't have any information about that, after you've made some initial bets already, preferably at least 50 bets to actually make any sense, you should start estimating your betting edge. To do that you need to take a look at your ROI (Return On Investment). If you don't know how to calculate your roi, here's an example:
To calculate your sports betting ROI you need to divide your profit by your investment, then multiply it by 100 for a % figure.
For example:
Total staked = $1000
Total return = $1200
Total profit = $200
Now divide your $200 profit by your betting investment of $1000, which equals 0.2. Now multiply it by 100 which equals 20%.
If your ROI is 20%, it means that you have an edge of 20% over the odds you take.
As we're talking about sports betting, the name of the game here is odds. Odds is an important aspect to look at when deciding how big bankroll you need or how big percentage of your total bankroll you can actually afford to use for any single bet. For example, if you're betting on football or basketball and the avergae odds are 2-1, then the 2% rule should be okay, as your odds are that you should be winning quite often. Then again if you're betting on something like golf, your odds can be 20:1, which means that you might win way more seldom and you should be betting way less than 2% of your bankroll at a time, just to be able to handle longer losing runs.
While you can sometimes win huge in betting, if you're extremely lucky, sports betting should be taken as a marathon instead of spring. To accumulate money with betting, it takes time, and you should be very patient. And stick to your rules. In addition to everything else you should also think about your own mentality. How much can you lose today so that you would still feel comfortable and wouldn't start pulling your hair out or go on tilt?
You can be a great bettor, but the reality is that no one is ever able to make consistent profits if you don't understand the importance of proper betting bankroll management. For example, if you bet everything you have on every game, it only takes one game to bankrupt you. While this example can be extreme, some people do make this mistake, especially if they are on tilt from previous losses.
Money management is one of the most important element in your betting, if not THE most important element. One could say that the way you manage your bankroll decides whether you investing or independent of what you think you're doing, actually gambling.
So besides the suggestion in my other post that as a general rule you usually shouldn't use more than 2% of your bankroll on any given bet, what else to should you consider?
While in the beginning you don't have any information about that, after you've made some initial bets already, preferably at least 50 bets to actually make any sense, you should start estimating your betting edge. To do that you need to take a look at your ROI (Return On Investment). If you don't know how to calculate your roi, here's an example:
ROI calculation
To calculate your sports betting ROI you need to divide your profit by your investment, then multiply it by 100 for a % figure.
For example:
Total staked = $1000
Total return = $1200
Total profit = $200
Now divide your $200 profit by your betting investment of $1000, which equals 0.2. Now multiply it by 100 which equals 20%.
What does your ROI show you?
If your ROI is 20%, it means that you have an edge of 20% over the odds you take.
What else?
As we're talking about sports betting, the name of the game here is odds. Odds is an important aspect to look at when deciding how big bankroll you need or how big percentage of your total bankroll you can actually afford to use for any single bet. For example, if you're betting on football or basketball and the avergae odds are 2-1, then the 2% rule should be okay, as your odds are that you should be winning quite often. Then again if you're betting on something like golf, your odds can be 20:1, which means that you might win way more seldom and you should be betting way less than 2% of your bankroll at a time, just to be able to handle longer losing runs.
While you can sometimes win huge in betting, if you're extremely lucky, sports betting should be taken as a marathon instead of spring. To accumulate money with betting, it takes time, and you should be very patient. And stick to your rules. In addition to everything else you should also think about your own mentality. How much can you lose today so that you would still feel comfortable and wouldn't start pulling your hair out or go on tilt?
more in betting
The Professional approach to Betting Investment
Betting could be considered a way of gambling or you could treat sports betting as an actual investment, which in perfect world it should be. And by professional approach I don't mean doing it full time but really just in a professional manner.
Betting could be considered a way of gambling or you could treat sports betting as an actual investment, which in perfect world it should be. And by professional approach I don't mean doing it full time but really just in a professional manner.
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