Money Management in Sports Betting
Money Management in Sports Betting
Sports betting is far more difficult than it may appear at the first glance. Amateurs usually think that it takes a bit of luck to become successful in this arena, but in fact it requires having a lot of skills, knowledge, long sight and keen intuition.
Among the other most essential things, sports betting money management occupies probably the most important place. It is universally acknowledged that a good punter firstly knows how to manage his bankroll, and secondly is able of recognizing value in the odds to offer. In other words, it means that he understands how to estimate the value and manage the risk.
We’re going to focus on the money management part, and list several most important things to take into consideration while betting. Some gamblers say that they have a special feeling or maybe “gut” telling them which bet is worth it, but once you’ve managed to recognize the value of the bet, comes a reasonable question “how much to wager in order to keep your bankroll safe in any case?”.
So here’s the very first point: What’s a bankroll?
Basically it is the amount of money which you have marked out for betting purposes, and more importantly – the amount of money you’re not afraid of losing. It is advisable to start with a bankroll of at least 100 units, so it will allow you to see consistent growth or on the contrary – decrease of your money. Take it easy at the beginning: the key to success is patience.
So here goes the second important question:”how much money to bet?!”
If you’re planning to build a career of a successful punter, you’d better not rush and bet very small amounts of money at the beginning. You should always keep in mind that sports betting requires cold math, instead of spontaneous wagering. Experts advice to wager only 3-5% of the total bankroll. Of course, in this case the amount of your bet would depend on your bankroll. So if it equals 1000$, then you should bet no more than 30-50$. Never tempt the fate, and place bigger bets, because the probability of losing the whole bankroll is too high.
Once you start winning, your bankroll starts to grow. But don’t let the winnings besot you – don’t even think of increasing the percentage of your bets. This way you’ll be able to make money slowly but surely. So the rule is – never rise your bets, otherwise your bettor’s career will end too soon.
Another thing of crucial importance is taking the odds into consideration.
It takes a lot of effort to become a successful punter, and probably the first thing you should master is learning how to read the odds. Some bettors may say that they can figure out what bet would be profitable by means of their intuition or a special feeling, but it would be more reliable and reasonable to take into consideration the odds offered by the bookmakers. There are several most popular odds formats: the US moneyline, European (decimals) and the British odds (fractions). Once you’ve learned how to read odds, it will become easier to estimate your chances for success.
Be ready for bursts and streaks, they are inevitable.
We are used to the thought that our life can’t be constant in its ups or downs. As the optimists say:”After the rain comes sun”, and this statement is also truthful if we turn it upside down: “after the sun comes rain”. The situation is quite the same in the betting arena – the balance may easily tip from one side to another.
Mind the Kelly Criterion
Kelly criterion was originally formulated for wagering on thoroughbred horse racing; however, it is perfectly applicable to all the other types of gambling. It is a mathematical formula that helps you figure out the percentage of bankroll to be wagered on a particular event in order to maximize the profits. The Kelly criterion is based on the probability of winning the bet along with the odds, and can be stated in the following three steps:
- Multiply the odds of a given event by the total probability of winning
- Take away the probability of losing from the number, which you have obtained in the first point.
- Take the number you got after two previous operations and divide it by the odds.
Bankroll management in sports betting determines your chances to success in this arena, so never underestimate the tips we’ve provided you with.
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