Money Management Tips for Sports Betting
Sports betting can be a very lucrative hobby and even a well paid profession if you treat it as an investment. The problem is that the large majority of all sports bettors are too unorganized and place their wagers without any clear structure or set goals.
Make a Plan and set the Foundation
First of all, before even your first bet, you should evaluate your current situation and determine an action plan.
Look at it like building a house. If you start by setting up walls, ceilings, floors and stairs, etc., without taking into account the foundation the house is built on, you will end up coming home to a huge wreck some day. The same goes for sports betting.
If you bet randomly chosen sums on games without any thought of how to pay if you lose or what do do with the profits if you win, you are destined to lose your investment! If you recognize yourself in that statement you already know that this tactic will not be profitable in the long run.
Do Not Chase Losses
In order to be able to sports bet safely, you should also keep in mind that you do not chase losses; do not throw good money after bad. Instead, learn from it and recognize where you went wrong, what variables you did not include in your assessment (weather, damage, appropriate tactics), and realize that even the best bet isn’t a lock.
Do not get desperate and look for new bets to place right away. Keep in mind that even though you want to become a millionaire overnight, your sports betting million will be built with regular solid investments made according to a certain plan.
Bet Within Your Limits
It is very tempting to place a huge wager on a game, especially if you are on a good run feeling invincible and it is getting boring only betting amounts dictated by your bankroll management. Betting within your limits is key to stay in the game though, and you must always work within your bankroll, no matter how good you feel about a game.
Experienced sports bettors know that losing streaks are inevitable. In order to cope with the variance, it is of the utmost importance to follow certain basic guidelines that assure the bettor of profit stability over the long run. Do yourself a favor and “stay in the game”. Do not miss out a winning streak because you blew all your money earlier in the season.
Money Management Rules
If your bankroll (the total amount you have set aside for betting) is $10,000 and your average bet is over $500 you are definitely risking too much.
No matter whether your’re picking your own game or follow a professional handicapping service, only you have the ability to eliminate the most comment reason for losing betting on sports. All you have to do is to practice sensible money management.
So how much should you bet per game?
It all depends on the size of your bankroll (how much you are willing to risk), but there is a general rule that applies regardless of whether you are a $10 /game bettor or if you are a $1,000 / game bettor.
To play it safe, you should stay within 2-4% of your bankroll and never wager more than 5% of your bankroll on any single bet. Let’s reiterate; there are no locks. Losses can and will happen.
Even if you hit 55% of your wagers on average, there will be extended periods of time when you win 70% of your wagers and there will be periods you hit only 40% (or worse).
So, can I make money by using this strategy you might ask? Actually, it is necessary to make money.
As your bankroll grows, your bet size will increase. And on the contrary, if your bankroll is decimated by losses, your bet size will decrease. As a result, it is mathematically impossible to lose the entire bankroll if you always risk just a small percentage of it.
Basic Bankroll Management Strategy for Sports Betting
Bet 2-4% of your bankroll as your average stake. If it’s a game you’re not completely sold on, decrease to 1% and if you feel very good about it, increase to 4%. For those special occasions when you found a wager you absolutely love, you can increase the stake a little bit, but under any conditions, never risk more than 5%.
Most services on the this site rate their plays on a 1-10 unit scale. We would advice using the following money management chart for sports betting:
- 1 unit = 0.5% of your bankroll
- 2 unit = 1% of your bankroll
- 3 unit = 1.5% of your bankroll
- 4 unit = 2% of your bankroll
- 5 unit = 2.5% of your bankroll
- 6 unit = 3% of your bankroll
- 7 unit = 3.5% of your bankroll
- 8 unit = 4% of your bankroll
- 9 unit = 4.5% of your bankroll
- 10 unit = 5% of your bankroll
This way you” always make wagers within 1-5% of your bankroll. If you follow a service though, remember to scale the chart above. If a handicappers max play is a 100 dime bomb, make that a 5% wager and his 10 dime wagers 0.5% of your bankroll etc.