Bookmakers do not take wagers as some kind of public service, they do it because it’s a lucrative line of business. Why is it so profitable? Well, it’s ultimately since they’re those that get to establish the chances, which allows them to effectively build in a profit margin on each bet they choose in.
The bookmakers’ advantage CAN be overcome though. Successful sports bettors are typically very knowledgeable about the sports they bet on and about all the strategy involved with betting too. They know that they must work really hard to become prosperous, and they are not afraid to put that hard job in. Best of all, they understand the importance of handling their money properly.
Money management is possibly the single most important skill required to be a successful sports bettor. This ability is much more commonly referred to as bankroll management, and in this article we are going to teach you about it. We begin by explaining what is involved, and then highlight its importance by detailing the benefits it has to offer. We also look at the dangers of poor bankroll direction, and offer some useful suggestions for managing a bankroll effectively. This information includes details of the various staking plans that may be used.
Before we proceed, we will need to make one point very clear. Please don’t feel that bankroll management is just important for those that are specifically trying to generate a profit from their sport betting. It’s essential for ALL sports bettors, irrespective of whether they gamble primarily for profit or primarily as a kind of entertainment. Poor cash management not only decreases your overall chances of producing a profit, but it also increases your chances of having a disagreeable experience.
What’s Bankroll Management?
Bankroll management could be simplified into three phases.
The first phase requires us to decide on a budget for how much cash we are ready to risk losing, and then devote that sum of cash to be used only for the purposes of gambling on sports. This next stage involves establishing a set of principles that determine just how much we should stake on any particular wager. These principles should be based on our general budget, how we bet and our gambling goals. The last stage is to use the rules defined in stage two. This is an ongoing process, since these principles should be applied to every single bet you place.
The amount of money we allocate in phase one is known as a bankroll. This is the point where the term bankroll management comes from. The principles for how much we should bet on wagers are known collectively as a staking plan. There are various sorts of staking plans to select from, but we’ll get to that later.
As you can see, bankroll management is in fact quite simple. Well, in principle at least. The first two stages are certainly straightforward, and easy enough to do. The third stage is the toughest, particularly for those that aren’t particularly obsessed when betting on sports.
We offer some advice for each of these stages later in this article. Before we reach that, though, we explain why bankroll management is crucial for sports bettors.