Sports betting may sometimes look like an easy way to make some money, but the fact is, about only 1% of bettors are making a long-term profit. One of the most common reasons why the majority of people fail in this business is their lack of money management skills. Sure, you have to have some betting skills and gain experience, but with lack of self-discipline and poor money management, you’ll most probably end up among the losers. Many punters are betting too much on each game as they don’t have any money management plan or just want to become rich fast. Then any run of a few bad results, that is totally inevitable even for the most experienced bettors, can have fatal consequences for their betting bank. Good management of your money significantly reduces the chance of extreme losses and allows you to make a successful long-term investment out of sports betting. There is a clear parallel between sports betting and investing at stock market – you shouldn’t think in a short term and try to achieve profit on a daily or weekly basis, but instead you should aim to show a positive balance at the end of the year.
Setting the Right Money Management Plan
First step is creating your bankroll – money set aside specifically for betting. This must be an amount that you can afford to lose and its possible loss will not affect your everyday living in no way. Then the decision about how much you will put on each bet has to be made. Ideally, it shouldn’t be more than 5-8% of your bankroll. Again, if you set this level too high, then any losing streak may become devastating for your bankroll. In this scenario your stakes are always calculated as percents from your current bank (the other option is to calculate your stakes from initial bank, but this way your betting success won’t have any effect on your stakes), so when you’re winning, your stakes become bigger, and when you’re losing, your stakes become lower. This way the possibility of bankruptcy is extremely low and in addition, it’ll help you stay disciplined and to not overreact with your stakes.
Having good money management should be an essential for every bettor. Most often then not, this will be the difference between success and failure. So create your bank, set your rules, and strictly stick to them in all situations. For this to occur, you’ll have to be disciplined.