Money Management

August 9, 2010 - by mosesbet · Filed Under betting articles Comments Off on Money Management 

Money Management

Making money in sports betting is not just about picking winners and losers: you need to have some form of money management to hedge yourself against losing streaks.  The following article offers some solid advice for any punters reading this.

What is Money Management?

Money Management is the process of managing your bankroll and limiting how much of it you wager in any single bet. Just like sports betting, bankroll management is just as vital for poker strategy.  In ring games players should sit down with a maximum of 5% of their total roll or 1% in poker tournaments (MTTs).  Likewise, in the popular casino game craps, players should only make Pass Line/Don’t Pass bets worth 1% of their bankroll.

Money Management for Betting

It is widely accepted that the normal amount to wager for each bet is 2% of your roll. This is small enough to cover the iffy variance of losing streaks (after all sports is full of surprises) but it also maximises your expected winnings i.e. money management is “pareto optimal”.

For players with a small bankroll worth less than £100, it is acceptable to place wagers to the value of up to 7% of your bankroll.  This reduces the risks but also allows you to win a worthwhile amount; the reason this works at low stakes is because the amount being risked is affordable.  At most online and mobile sports betting sites the limits start at £1, so it would be impossible to stick to the 2% rule with total deposits of less than £50 anyway.

Financial discipline is very important for all successful bettor.  Don’t let yourself get caught out on losing runs or start applying the infamous “martingale” betting system which involves “doubling or nothing” your money for every loss.  This system is terrible and it is completely ineffective for covering big losing streaks.  The more emotions gets involved in your decisions then the worse they usually become full stop.  Becoming tilted because you were minutes away from a massive payday is always difficult to handle, but it’s how you respond to adversity and losses that turns you into a long term winner.  No one can win 100% of their bets each week or predict all of the scores, but not everyone splashes out the last remnants of their wallet trying to recuperate heavy losses.  In fact, if at any stage you feel that you need help or are losing control of your finances then you should visit gamblers anonymous for friendly and helpful support.

3 Secrets to Making Money in Betting

At the end of the day, the secret to making money betting on sports is to place as many successful bets as possible at the most competitive odds and utilising pro bankroll management skills.  Even a professional sports analyst will lose money if he wagers too much per game.  It’s a simple business rewards-risk formula that guarantees minimal losses.