Money Management in Sports Betting

 Money Management in Sports Betting

You must be good at managing your money if you are to become a successful sportsbettor. Long-term winning is a combination of value betting and money management. As we have covered the first, it is time to look into money management. Also, learn how much you should risk for each bet.

Many players make the fatal mistake of placing too much money on the outcome. This is what keeps them away from long-term success. After several losses, some players bet all they have. Worst is when players wager money they cannot afford to lose. Money that should have been spent on rent or food. You don't want to be in these kinds of situations. You want to be smart and win, which is achievable with the right strategy. Money management is what makes the difference between the long-term winners, and the long-term losers.

Here are some tips to help you manage money.

Bankroll

These mistakes can be avoided by having a bankroll. You should only lose what you can afford without causing major disruption to your daily life. A bankroll of 2000 is possible if you have 10,000 euros or 10,000 USD in savings. It is not necessary to know the exact amount, since it will vary from one player. It is important to set aside a realistic amount that you are able to afford to lose and that allows you the opportunity to wager with the best bookmakers.

You can make a huge bankroll if you are patient, skilled and persistent. You don't have to be content with 100 dollars. It can quickly turn into thousands of dollars if your skill is good enough.

To build a large bankroll, you must avoid cashing out within the first year. Allow it to grow. Once it is a substantial amount, you can start to cash out.

After you have created a bankroll it is time for you to determine how much you should be placing per bet.

Risk management

The decision is yours to make about whether you prefer to be aggressive or conservative. You can be conservative or aggressive depending on your financial situation.

A bet size of 4 percent or more is usually considered aggressive. If you lose ten consecutive bets (which can happen even for professional gamblers), then your bankroll will have dropped 40%. Ten wins in a row, on the other hand, will increase your winnings by quite a bit.

Semi-aggressive is putting 3% of the bankroll on each wager. 1-2% is the Goldilocks Zone where you can manage your risk well and still have the chance to increase your bankroll. Conservative bettors and bettors with large bankrolls may only wish to risk 0.5% or less on each wager.

Aggressive players may want to wager around 3-4 percent. Normal players will be happy to place wagers in the 1-3% range. Conservative players will be happy to place bets that are less than 1% from their bankroll.

The size of your bankroll is also important. A large bankroll (e.g 100,000 USD or more) will require you to be more cautious. It makes sense to be more aggressive with a small amount of money, like 200 dollars. You don't stand a chance of losing much.

In any case, it is not recommended that you wager more than 5% on each bet. Although you can wager as much as 5% on high-value bets we recommend not exceeding five percent. It is just too risky long-term. On average, we recommend you wager between 1-2% and 3% of your bankroll for each bet.

The best size for your bet

You will find that 1% to 2% is the optimal bet size when you have a large bankroll.

Experience with money management has taught us that a bet size of 1.5% works well. If you are skilled at finding value or have access the best tipsters, you can make a significant profit for long term. With an average wager of 1.5%, it's not easy to go broke or lose half your bankroll. For most serious players, it makes perfect sense.

Flat betting vs units

Flat betting is an option for some players. Flat betting is where you place the same amount, or at least the same percentage, on each bet regardless of its value and the odds. Although this will reduce variance, it will not enable you to maximize your most valuable spots.

You can also place units. A unit can equal 1% of your bankroll. Two units could equal 2%. You can create the system by yourself. This system offers more variation (imagine losing a few high unit bets in succession!) You also have the chance to profit from matchups with great value.

Flat betting is still a popular choice, even though it has its drawbacks. For experienced players, flat betting can bring you less variation which is extremely important.

However, it all depends on your personality. Some players prefer flat betting and others prefer unit betting. There's no right or wrong in this. Both work if you are betting in the right places.

You should always update your bankroll

Keep track of your wagers. What frequency should you monitor your bankroll and what should you do to adjust the stakes? It's best to do it as often and as often possible. You would love to be able to adjust for each bet. But, since there is so much action (for example, 50 different bets per weekend), this is unlikely.

You can instead adjust the bet sizing for every 50 bets. This should be enough. So, for example, if your bankroll begins at 100 dollars then the bet sizing is 1.5 dollars (if 1.5%). After placing 50 bets within the first week, your bankroll will have grown to 120 dollars. Now you can start betting 1.8 cents per wager.

You work with the exact same percentage, but your bankroll size changes, which means your stake size will change. Although this will not be a significant change, it is essential if your goal is to grow. It is like having savings in the bank. Over time, you will earn interest. You will eventually accumulate a lot of money, and this idea is even more powerful in sports betting - especially if it's easy to find value.

Any questions regarding money management? Send us a message below.