Sports Betting Money Management 2021
Making the right picks is not only what makes you a successful bettor, but you should build your sports betting money management strategy. Even if you hit a big winner, being smart with your profits is crucial. The purpose of money management strategies is to help you to continue winning while lowering the risk of losing money back. We are bringing you strategies to manage your funds in sports betting successfully.
What is sports betting money management?
As its name indicates, sports betting money management is the way of keeping control of your funds dedicated to placing sports wagers. It is also known as bankroll management. We can split the bankroll management setup into three steps.
The first step is pretty straightforward. It requires you to set the sum of money you are prepared to risk losing. It is essential to allocate that amount of money and use it only for betting on sports. That sum of funds is usually called a bankroll.
In the next step, you should establish the set of rules to determine the stake on any given bet. Those rules depend on your overall budget, wagering strategy, and your betting goals. We also call these sets of rules a staking plan. There are different types of those, which we will describe in more detail later.
Finally, in the third step, you should apply the rules you set in the previous one. You should use these rules for every wager you place, which makes this step an ongoing process.
The principle of bankroll management is straightforward, but you must be persistent and stick to it. The third step is the most challenging one, as it requires full discipline.
The importance of money management in sports betting
The most significant advantage of applying bankroll management is that it will help you bet responsibly. It can prevent you from risking the money you cannot afford to lose. This point is essential since nobody should use livelihoods for sports betting.
Bankroll control ensures you of not chasing losses on a losing streak. Every bettor will inevitably enter losing streaks occasionally. Even the most successful bettors can fall into this kind of trouble, not to mention the casual ones. It is a perfect situation to lose control and start chasing your forfeits. You fall into the temptation of increasing the stake to win money back quickly. Eventually, it always ends in the wrong way. However, if you stick to the rules you’ve set, you can resist the temptation of chasing losses. Having them in place makes it a lot easier to stay disciplined.
But, what if you have a winning streak? It can always happen even to casual bettors. Winning streaks are what we are aiming for, but we need to be careful of their downsides. They can boost your confidence and make you increase stakes in a pursue of a vast profit. You can make the same mistake as chasing losses. Your previous winnings may drain down when your winning streak comes to an end. Of course, you can increase stakes with a proper plan, and that is completely fine. But, everything should remain under the set of bankroll management rules that you’ve put in place.
When dealing with losing streaks, bankroll management won’t just prevent you from chasing losses. Remember, there is always a link between your bankroll and your staking plan. If your bankroll starts to decrease, your stakes will follow that trend as well. Thanks to the proper money control, you can withstand multiple losses without running out of funds quickly. It will give you time to reconsider the potential bad decisions you are making and adjust your strategies. On the other hand, if you are betting just for fun, decreasing your stakes may extend your entertainment.
It is essential to point out that bankroll management cannot prevent you from losing money. Of course, if you lose every bet, eventually, your bankroll will become empty. However, it can slow down the rate at which you lose.
Proper bankroll control can help you focus more on making rational decisions and selecting the right picks. It makes the financial aspect of betting less relevant, meaning that you shouldn’t focus only on how much profits or forfeits you make on a given wager. If you are making your selections just from the profit perspective, it may lead you to the wrong ones. This approach can lead you to better results in the long term.
Setting up a bankroll
Setting up a bankroll refers to the first step in sports betting money management. It is pretty straightforward since all you need to do is to set aside a sum of money. That funds should be allocated only for betting purposes. You decide the amount, but bear in mind that it must be affordable. You should feel comfortable losing it since there is always the possibility of failure.
No matter if you are betting for fun, or you are a pro, you should set a budget for how much you can afford to lose. It can be a weekly or monthly budget. It is entirely up to you. We recommend you to keep records of your gains and forfeits, so you can stop in case of losing your budget. In case you are a professional bettor, you should separate the sports betting budget from day-to-day funds. There are multiple ways to do this. You can fund your sportsbook accounts, open a new bank account, or use an e-wallet. After you set up your bankroll, the next thing you need to do is choose a staking plan.
Money management strategies
It is time to dip into the essence of bankroll management and explore different strategies. Once you have set up your bankroll, you should put it to good use. We will go through the most popular money control strategies used for sports betting.
The most common strategy for placing bets is fixed staking. A fixed stake is usually a percentage of the initial size of your bankroll. This strategy lets you apply the same stake to all your bets. Therefore, the sum of your profits will depend only on the odds you have chosen. Many bettors consider this strategy to be suitable for beginners.
One of the best strategies for maximizing bankroll growth is well-known as the Kelly Criterion. It was developed in 1956 and became very popular among bettors. The principle of this strategy is based on a comparison of perceived odds of a bet winning and payout odds that the sportsbook offers. This comparison should tell you the size of the stake to wager on a bet.
To calculate the stake size of your bet, you should multiply the odds by the chances of winning, and then divide that number with the odds minus one. Keep in mind that for this calculation, you should use the odds in decimal form. For getting the most out of the Kelly Criterion, it is crucial to predict the chances of winning correctly. This way, you should avoid overvaluing or undervaluing your bets. The Kelly Criterion strategy helps you analyze less clear bets, and it can tell you not to bet if the odds work out purely. Eventually, it reflects the size of your bankroll by pushing for aggressive growth.
Compared to the Kelly Criterion, Star System strategy is even more aggressive. It is a sophisticated version of the Martingale strategy, which bettors use for casino and sports betting. Star System involves an incremental series of rising bets to boost your bankroll rapidly. Bet multiples go in the series of 1, 1, 1, 2, 5, 10, 15, 25, 40. The start of progression occurs only after a win. Remember, you need to be very confident in your picks to apply this strategy. Otherwise, you risk losing the entire bankroll due to the errors made in gambling.
Money management tips
There are some tips that you should consider to get the most out of your sports betting money management.
Being patient is one of the crucial tips in sports betting and gambling in general. It is a prerequisite for any bettor. If you are not patient, you will undoubtedly fail, simple as that. Be prepared to enter a losing streak any time; there is no chance that you can skip it. Sports betting is a long race, not a sprint, therefore act responsibly and keep your bankroll healthy. Thanks to the bankroll control, you can go through losing streaks less harmed.
If you intend to bet for fun, then you should learn not to bet too much. Do not gamble on the funds you are not comfortable losing. It will lose your stress in case of bad luck, and sports betting will always be entertaining for you. Ultimately, the goal for a casual bettor is to enjoy the wagering experience. By risking the sum of money you are not comfortable with, it will hurt that bid severely. Always keep within your budget set.
Many gamblers do not separate their gambling bankroll, which is a big mistake. Separating the sports betting funds from other finances will help you keep track of your overall gains and forfeits. However, if you are dipping into the funds outside of your wagering budget will lead you to spend much more than you are comfortable losing. Whether it is a weekly or monthly budget, we recommend you to have a separate gambling bankroll.
On the other hand, taking money from your bankroll is a lousy practice. Instead of withdrawing money every time you win, you should keep building up your bankroll. If you are a casual gambler, you will be looking to use the money you earn for buying or doing something fun. However, if you intend to dip into more serious betting waters, it is vital to keep your winnings in your bankroll. The more money you have in your gambling bankroll, the more damage your bets can cause to sportsbooks.
In case you don’t know how much money you have in the sports betting bankroll, or you lost track of your wins and losses, then your money management is weak. Tracking your bets and bankroll management can give you insights into your past successes and failures. Although this is a simple tip, gamblers underutilize it very often. You do not need more than a paper and a pen to do this. You can also track these records in an Excel sheet. Analyzing your bets, which brought you the most money, or took you most of the losses can help you focus on your most substantial areas.
When talking about bets, we recommend you place a wide variety of smaller bets. Focusing on fewer bigger wagers won’t help you build up a bankroll. Gambling professionals prefer to build up their bankroll slowly, and the best way of doing so is by placing lots of small bets.
However, diversifying your bets doesn’t necessarily mean that you should bet on everything that you have in mind. You should always do some research before placing your bets and analyze what odds are the best. The internet is an excellent tool for digging into the data that might give you an edge over sportsbooks. Make sure not to focus only on the number of your bets, but on the quality as well. If you need help in finding professional picks, sign up for Billy’s List for free.
This tip might seem too obvious, but you should always keep in mind to stick to your plan. What differs professionals from casual gamblers is that they don’t fall under the temptation when things are not going well. Sticking to your policy is what counts, and not the fact that you have just made it.
Bankroll management strategies play a significant role in staying responsible. It helps you raise the level of discipline and keeping control over your funds. It may also prevent some impulsive behavior, whether it is chasing for a huge win, or quickly recovering losses. Thanks to the responsible gambling, you can improve your bankroll management strategy and avoid reckless behavior.
Sports betting money management: Try it now at one of the top 5 betting sites
It’s time to convert your theoretical knowledge into practice! Set up your bankroll and choose one of the strategies mentioned in this article that suits you the most. Register an account at one of the best sports betting sites and put in place your plans. Enhance your wagering experience by sticking to your bankroll management and enjoy profits in the long term. Remain patient, and the strategy should pay off.