Many sports bettors don’t take money management as something of importance. And they focus on profitable betting systems, and other betting strategies to make a profit from sports betting.
But, the truth is that money management is one of the essential parts of sports betting. As if you don’t pay attention to your betting bank, and don’t have proper money management… You will never become a professional “sports investor.”
Let’s face it, the perfect (or good) money management will reduce your chances of going broke in a short time. And eventually will help you become a better sports bettor.
Professional sports bettors are usually knowledgeable about many sports betting segments (sports, leagues, players, strategies, systems, etc.). But they know that one of the most essential skills for any sports bettor is to understand how to manage their money correctly.
In this article, we will try to explain to our readers, all about arguably the most important skill required to be a successful sports bettor. MONEY MANAGEMENT (aka bankroll management).
What is Money Management and Why It Is Important?
Money management is vital for any sports bettor, as it saves the bettor from catastrophic losses and also puts certain limits to gambling behavior. Money management can be divided into several categories, and the first category is setting the “betting bank.”
The betting bank (aka bankroll) is the amount of money that the bettor is prepared to risk losing, and that sum of money is used solely for the sports betting purposes.
Once when the betting bank is set, the bettor needs to make a staking plan. And that is the second thing every serious bettor needs to set to make a proper money management strategy.
Once when you had set betting bank and found the proper staking plan, all you need to do is to follow the rules of your staking plan on every single bet you take.
So, every bettor needs to have a high level of discipline! In order to make long term profit from sports betting. Truth be told, money management rules are very easy to learn, but they are the hardest to follow.
The importance of money management is enormous. It actually helps bettors to gamble reasonably and when applied correctly, it ensures that bettor doesn’t risk more money than they can afford to lose. Except for this the most obvious benefit, there are other essential advantages of using proper money management in sports betting. It ensures that bettor will not chase the loses when on the losing streak; it stops bettor from over staking when they are on the hot streak and also gives the bettors opportunity to make smarter and more rational decisions when placing wagers.
Choose the Perfect Staking System
There are several popular staking strategies in the betting industry. The staking plan is the method of placing your wagers. The three most popular systems are flat staking system, unit staking system, and Kelly Criterion staking system. We personally believe that a flat unit system is the best for the novice and weekend sports bettors. And Kelly Criterion is the best staking system for professional bettors. Still, choosing the perfect staking system is a completely subjective thing, and every bettor should choose one based on their personal preferences.
Also, it is important to underline here that there are several negative progression systems such as Martingale, Fibonacci and others… That we don’t recommend as we find them extremely risky for your betting bank.
Size of Your Wager
Once, when you decide what staking plan you will use, it is time to determine how big (or small) will be the amount of every single wager. In the sports betting theory, it is always recommended to place from 1% to 5% of your bankroll on each wager.
More conservative sports bettors (or novice sports bettors) should bet 1% to 2% on each bet. And more aggressive (or more experienced) bettors can go up to 5% on every single wager.
The importance of a dedicated and disciplined staking plan is huge. In sports betting streaks are common, and once when bettor hits a losing streak, his betting bank can be seriously damaged quickly, if he has bad or no staking plan.
Our main goal with this article was to show you the importance and just how vital money management in sports betting is. If you want to make a steady profit from betting, you must have at least basic knowledge about money management and staking plan. The proper money management, is without any doubt, one of the segments with most importance of every sports betting adventure. Your capping skills are worthless if you don’t have stable money management. Bankroll, staking system, and pre-determined size of a wager will let you stay in the games when the hard times come.
Naturally, understanding and implementing the money management is only one of the steps towards the steady betting profit. But if you manage to make a good staking plan and be disciplined with your wagers. There is no doubt that you will be able to make a profit from sports betting.
There are several philosophies of bankroll management, from conservative to extremely risky, but in our opinion, you should never bet more than 5% of your bankroll. If you want to be more conservative than your stake should be in the range of 1% to 2%.
There is no universal answer to that question, but many bettors lose their money on sports betting because they don’t have proper discipline, and they don’t possess enough knowledge about how the industry works. Every successful sports bettor needs to have adequate money management and a steady betting strategy. Also, it is important never to wager more than you can afford to lose.
There are a lot of strategies on the internet, but we think that the best way to win parlay bet is to use betting systems. Betting systems (Trixie, Yankee, Goliath, etc.) are similar but different types of parlay bets. Some of these are described in our betting systems guide, so if you want to learn more about the best betting systems, you should read that article.