Bookmakers aren’t into the sports betting business solely to help people, the main reason why they do it is because of the profit they realized from it. Since they are the ones that prepare the odds and the betting markets, they could easily devise a good profit margin for every betting market. In this article, we will be discussing how you can overcome the bookmaker’s advantage as a bettor through effective money management. Money management popularly known as bankroll management is the most important skill required in sports betting.
Table of content:
- What Is Bankroll Management
- Why Is Bankroll Management So Important In Sports Betting?
- Bankroll management and losing streaks
- Bankroll management and winning streaks
- Bankroll management and withstanding losses
- Bankroll management and rational decisions
- Choosing A Staking Plan
- Conclusion
What Is Bankroll Management
Bankroll Management is not just for struggling bettors, it’s for all sports bettors as long as they stake. Poor bankroll management doesn’t only spoil your betting career, it also reduces your chances of making profits. Money management can be broken down into stages for better understanding. The three stages it could be broken down into include;
- The first stage is all about preparing yourself for risk-taking by setting a budget for how much you feel you can comfortably lose. The cash you come up with is what you should invest in sports betting
- The second stage is all about setting betting rules that will guide wagers. These rules will guide how much one can bet on each betting market, it basically helps to monitor betting goals.
- The third stage is related to the second stage. It’s an ongoing process guiding every window wager you place.
The budget created in stage one is called the bankroll, while the rules altogether are regarded as staking plans. The first two stages are simple and straightforward while the third stage takes a lot of discipline and focus. Moving on, let’s discuss why Bankroll management is so important in sports betting.
Why Is Bankroll Management So Important In Sports Betting?
The best way to gamble is to gamble responsibly, bankroll management helps you achieve this. As a bettor, if you follow those three stages of bankroll management that were earlier discussed, you will find it very easy to place bets within your means and overcome the temptation of increasing your stake on a game you feel is promising. Bankroll management will also make you understand that you shouldn’t stake with the cash needed to pay bills or sort other expenses. Other benefits of using bankroll management include;
- The ability to resist chasing your losses.
- It helps you overcome the temptation of increasing your stakes when you’re on a winning streak.
- The bettor the ability to resist breakdown when suffering multiple losses.
- It allows the bettor to make better decisions when trying to place bets.
Let’s have a more detailed explanation of these benefits
➔ Bankroll management and losing streaks
All sports bettors suffer losses, even professionals! There’s going to be a time in your sports betting journey whereby nothing will seem to fall in place and all your predictions will go wrong. At this point, the temptation of chasing your losses starts to creep in. Some bettors resort to increasing their stakes hoping that they will win one game that will cover all their losses. This is a very bad move. With proper bankroll management and staking plans, you’re most likely going to resist the temptation, but this wouldn’t work without discipline.
➔ Bankroll management and winning streaks
Something similar as in the losing streak also happens in the winning streak. Just like all bettors would experience losing phases, they will also enjoy winning phases. In the winning phase, everything will seem to work out fine, with good predictions, consecutive wins. However, the winning streak also has its own downside. Increasing your stakes when you’re on a winning streak isn’t a common thing but when it happens, it’s always as a result of overconfidence and greed. This greed could easily lead to you giving back all you earned. However, good bankroll management can also help resist this temptation.
➔ Bankroll management and withstanding losses
This has to do with dealing with losing streaks. What bankroll management mainly does is to stop you from chasing your losses. Your bankroll and the amount you stake are linked. As your stake increases, your bankroll decreases, and in no time your bankroll will be exhausted. But if your bankroll decreases due to losing streaks, and as a bettor that understands bankroll management, you decide to also reduce your stake, your bankroll wouldn’t run down quickly. If you’re a bettor that’s into betting to make more money and not just into betting for fun, then bankroll management should be your priority. It’s very possible for you to lose every penny if you keep staking with the same amount even when your bankroll has decreased.
➔ Bankroll management and rational decisions
Good bankroll management makes cash for stakes in betting less relevant. Although this sounds counter-intuitive, the fact still remains that you shouldn’t always put your mind on wins or losses on any wager. Your focus as a bettor should be on trying to make better decisions in betting. Making better decisions seems easy when your mindset isn’t bent on just making money. Having the “making money” mindset is the cause of placing bets for the wrong reason. In the course of betting with the mindset to make money, you’re most likely to go for long shots which is not sensible and irrational. A bankroll should be viewed as nothing but a tool for betting.
Choosing A Staking Plan
A staking plan comprises rules that define your stakes on wagers. The staking plan is broadly categorized into two;
- Fixed staking plan
- Variable staking plan
The fixed staking plan is very straightforward. It’s not complex at all to use and this makes it suitable for novice bettors or bettors who are into betting for fun.
The variable staking plan on the other hand is very complicated and solely deals with the size of your bankroll. The variation is due to certain factors such as; the level of confidence and potential return.
Conclusion
This article has shown you the importance of bankroll management. You must consider bankroll management as a bettor regardless of what you bet for, either for fun or for extra cash. Not involving bankroll management in your betting activities could lead to an excess loss on your part.
