Money Management

sportsSports betting has acquired a status of being one of the most profitable businesses in the world. And indeed, it can generate substantial profits for both bookmakers and punters. However, it’s important to note as bookmakers run the so-called “balanced books”, they always manage to generate profits, while punters, on the other hand, don’t win every time they place a bet. The average punter might end up losing a substantial amount of money for two chief reasons. The first one is insufficient knowledge in regards to the sports betting terminology. But losing money can also result from poor or inadequate management of one’s funds. The latter is valid for sports betting novices predominantly, as seasoned punters have their experience and established tactics to rely upon.

Keep in mind, money management is a necessary requirement, at least if you wish to generate profits when placing your bets. It should not be underestimated by recreational bettors, either. Those, who don’t employ any bankroll management techniques risk losing all of their money to the bookmakers. But there’s absolutely no need to fret or panic as managing your bankroll is in fact relatively simple.

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We’ll first broach the questions why managing your bankroll is so important, and how exactly it enables punters to be more successful. First of all, applying proper money management tactics can prevent you from running out of money. In the worst-case scenario, it will decrease the rate at which you are losing. But naturally, if you want to generate profits, you’re required to place winning bets. Those of you, who lose every time they place a bet should probably reconsider the way they manage their betting finances or quit betting altogether.

Managing your money is handy because it helps you to establish a certain set of rules for yourself. The rules should be based on several criteria, the chief ones being your bankroll size and the base betting unit you use. Following the rules is supposed to help you ride out a longer losing streak without losing all your money. Naturally, in some instances discipline is involved as sometimes it could be difficult to follow the rules, you’ve set for yourself. But it’s definitely worth it as it will help you generate greater profits in the long run.

Following your own money management rules will prevent you from getting carried away when you’re on a winning streak. After all, it’s important to know when to quit. But it will also restrain you from attempting to overcompensate for your losses by placing any reckless bets. Remember, successful punters are those, who are able to learn from their mistakes and avoid repeating them all over again.

Decide on Your Bankroll Size

sports betting bankrollKnowing how much money you can afford to lose is of crucial importance. After all, there is always a possibility of punters placing a losing bet. It’s difficult to predict what is going to happen at any given moment. That’s why, each betting novice should begin by setting a limit for themselves and deciding what amount of money they can part with, without going completely bankrupt.

From this, it follows the first step is allocating a specific amount of money that you intend to use to bet with. This amount is, in fact, your bankroll. Please note, the sum you intend to spend on placing bets should not come at the expense of your personal savings and day-to-day money. If that is the case, you should consider quitting betting altogether as this indicates you might have a gambling problem. Once you’ve chosen a reasonable limit for yourself, you can start betting with your bankroll.

Set a Base Betting Unit for Yourself

Set a Base Betting Unit for YourselfDeciding on how much you can afford to lose is only the first step towards proper money management. The amount of money you place per bet is also worth mentioning. After all, you cannot put your entire bankroll on a stake. The reason for that is simple – if your bet turns out to be a losing one, you will be left with next to nothing; your entire bankroll will be exhausted.

It all has to do with what base betting unit you decide to use. The betting unit basically indicates how much money you are willing to risk on a single wager. Most betting experts’ advice is to use a base unit of 1% to 3% of your total bankroll size. Naturally, some of you might decide on a higher betting unit, depending on how much money they can afford to risk losing. Some punters’ base unit reaches up to 5% of their bankroll size. It’s all very relative and depends on your individual needs and preferences.

The most suitable base betting unit for beginners is considered to range between 1% and 2% of their total bankroll size. Using such betting units will allow to ride out a longer losing streak without spending your entire bankroll too quickly.

It’s important to note betting units of 4% or 5% are considered too risky even by very seasoned punters. Large bet amounts may result in you losing half or even most of your bankroll. That’s why it’s advisable to stick to smaller betting units (1% or 2% tops) as such tactics will enable you to stick to the rules you have established for yourself.

Look for Value Bets

value betsThose of you, who wish to generate more substantial profits should probably look for bets with greater value. The bets’ value is of utmost importance for profitable sports betting. Unfortunately, many punters, especially those who are new to betting, struggle to understand the value’s importance. However, this approach is especially handy for collecting greater profits in the long term.

Let us start by explaining what a value bet is. In many cases, seasoned punters are able to discern which team has a greater chance of winning the respective game, even if this fact is not reflected by the odds, the bookmakers offer. Sometimes the odds, provided by the bookmakers don’t suggest that particular team is likely to win but nevertheless, experienced bettors decide to place their wagers on the team. The reason being that the bookmakers’ odds are simply the market prices for bets. There’s no way for the bookmaker to determine whether or not the team will lose. In many cases, the odds are set, depending on the team’s position in the standings table.

Now let’s imagine a hypothetical situation where a very successful team like Manchester United play against Norwich City. Most punters would assume Manchester United are to win and therefore, will place their bets on this team. Unfortunately, this will result in the bookmakers significantly lowering the odds for Manchester United to offset their own losses. This means that even if Manchester win, those who have placed their bets on the team will generate very humble profits because of the lower odds. This explains why some punters decide to take their chances and bet on the other team (in this case Norwich). Often there is a greater value in backing the team that is less likely to win because the odds are much higher. We all know what this means – greater odds are equal to more substantial profits. Besides, let’s face it – even the best of teams like Manchester cannot win every single game.

Which naturally begs the question “How do we find higher value bets?”. At the end of the day, it all comes down to intuition. The best way to go is keeping track on how the different teams perform throughout the season. This will enable you to see whether the odds, provided by the bookmakers, correspond to the teams’ performance. If a team performs better than the standings table indicates, it is very likely they will start winning soon. This is the moment to bet on a team with lower standings position, as the odds for the underdog will be higher after a few losses.

Another good idea is to keep track of the transfers. If a promising player is transferred to the team you’re rooting for, chances are his move will tip the scales in the team’s favor and increase their chances of an unexpected win.

This previous example involves football teams, but the same tactics can be successfully applied to all sports you bet on.

Compare the Odds

Compare the OddsMany experts recommend comparing the odds, offered by different bookmakers. First of all, because it’s less time-consuming than watching all the games and keeping track of the latest sports news. The other reason being that in many cases odds may vary from one bookmaker to another. This being said, it’s worth mentioning that most of the time such differences are rather insignificant. But in some cases, there are greater odds variations. Despite that, taking the time to draw comparisons is definitely worth your while. If you’re betting online, it would be a very good idea to register with accounts at several web-based bookmakers. It will save you lots of time, to say the least.

Before you place a bet on any important game, visit all the online bookmakers you have registered with, and check what odds are available on each website. You should place your bet with the bookmaker that offers the best odds. This will also help you generate higher profits in the long run as you will win bigger amounts of money. There is no need to settle for mediocre odds. What’s more, there are various specialized betting websites which provide an adequate comparison of top bookmakers’ odds. Such websites will help you find the best odds even quicker.

Place Flat Bets

Place Flat BetsPunters with more humble bankrolls are frequently advised to use the flat betting strategy. This is a good idea even for those of you, who boast more substantial bankrolls. Some betting systems suggest punters should slowly increase their bets’ size on the premise that sooner or later they will win. Applying such strategies is rarely a good idea, especially if you are new to sports betting. There will come a moment when you experience a longer losing streak, which naturally will result in you losing a massive amount of money all at once. Not to mention with a smaller bankroll, you are likely to lose all your money before your losing streak has ended.

Placing flat bets is a suitable strategy for those of you who are looking to maintain their profits and avoid the risk of losing their entire bankroll. Basically flat betting is when punters bet the same amount of money each single time. Now, why is this a good idea? If you change your bets’ size for each game, you might end up winning more times, but your overall profits will be much smaller in the long term. Meanwhile, placing only flat bets allows you to better control your spendings. Yet another advantage of applying this strategy stems from the fact that it prevents you from losing massive amounts of money with a single bet. That’s why it’s advisable to play it safe, especially if you lack experience.

A little earlier, it was mentioned that punters should first decide on their base betting unit. Stick to the percentage, you’ve decided upon and don’t increase your bets’ size. All your wagers should be placed at the base betting unit you’ve set for yourself. On rare occasions, you might take your chances and wager two units but that is the most you should risk. When you apply the flat bets strategy, the only thing you have to do to collect greater profits is select more winners than losers.

Avoid Parlays

parlay bettingSports betting beginners should stick to placing single bets and avoid parlays altogether. These are also frequently referred to as “combo bets” or “accumulators”. Basically, parleys consist of several selections – those with two selections are called “doubles”, those with three – “trebles”. Sometimes the number of selections may reach up to 12 for a single parlay. Experienced punters often bet that two, three or more point spreads will win. If each single selection turns out to be a winning one, the profits the punters will accumulate would be higher than if they had placed individual bets.

As you can see, one of the main advantages of parlays is that they promise bigger potential returns. For example, you try to predict the correct outcome of six football matches, so your parlay will consist of six selections. If all six guesses are correct, the odds of all six selections will be multiplied and you will scoop up a handsome amount of money. This may be so, but here’s the tricky part – a single losing selection will result in the entire parlay losing. The returns may be greater, but so are your losses in the event of making a single incorrect prediction.

Sports betting novices, however, should try their best to stay away from parlays. And it’s not that difficult to see why. Let’s imagine you’ve placed six single wagers instead of the six-selection parlay. Four of your single wagers lose, two of them win. You still get the chance to collect your profits from the two winning bets. Whereas, with parlays, it matters not whether one or four of your selections are incorrect – either way, you lose and don’t collect any winnings whatsoever.

As you can see, money management demands discipline and control, first and foremost. But it also requires sufficient knowledge, intuition and patience. Managing your bankroll may prove to be a rather complex activity, which covers many different aspects of handling your funds. That is why some punters fail to understand the concept of money managing altogether, let alone apply it.

The most difficult part is sticking to the rules you have set for yourself. Following the same set of rules prevents you from making rash decisions, which can cause you to irrevocably lose your entire bankroll. The truth is every punter, experienced or not, wishes to get a taste of the thrills a risky bet can offer. But before you take this risk, you should ask yourself “Is it really worth it?”. In most cases the answer turns out to be a resounding “No.”

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