Why bankroll management is important for every sports better?
A good sports bettor knows the importance of finding value over the course of a season consistently. He should be well aware of how much money he needs to keep aside for betting to make it a profitable business. Most of the times, people tend to put random amounts on bets and despite having a good winning percentage, end up losing money. This usually happens when the bets that you put more money into end up losing and the bets you put less money on end up winning.
How to manage your bankroll
Firstly, we need to make sure how much money we are prepared enough to risk losing and accordingly allocate a budget. This budget is set up solely for the purpose of sports betting. The money that is allocated is known as a bankroll.
The next step is to set up some rules that determine how much we are willing to stake on a given wager. These rules are also known as staking plan. The staking plan needs to be devised by analyzing other variables such as the total budget, the player’s betting goals and how he bets.
Third, you have to apply the above rules properly. You need to remember that the rules need to be applied to every wager that is made.
The initial first and second step is easy to follow. The third step is tough to follow especially for those who aren’t disciplined enough on sports betting.
Why do people lose money?
First, we need to see why 95% of people lose their money. The main reasons are:-
- They tend to chase their loses.
- They bet more from their bankroll per play without a proper strategy.
Why do people need to manage their bankroll?
People need to understand that becoming a successful gambler takes time and patience. Some statistics even state that 95% of the people who bet in a particular year lose their money ultimately.
No matter how much experienced you are, if you do not follow some sort of money management system, you will ultimately lose your total bankroll.
Everyone can make mistakes. Players can choose a bet which has a high commission rate or have little value. Managing bankroll is essential in situations where the players do not have a proper staking plan.
With proper bankroll management, you are limiting yourself from spending more money over a certain limit. You are setting some money aside only for the purpose of sports betting and accordingly using a strategy to use the money appropriately.
Why is bankroll management important?
Personalized betting strategy
You can check out a number of staking strategies to determine which strategy is perfect for you. Choose from a simple staking plan to advanced strategies like Martingale and Fibonacci. Instead of choosing the advanced strategies, you can choose the Kelly Criterion betting strategies like the proportional and percentage staking plan. Sounding difficult, right? Not really! Give it a try!
The Kelly Clarkson approach is better than the other approaches as it balances out the two extremes like the bankroll fraction that you are staking and the size of your edge. The size edge or the probability of winning the bet is calculated from the implied probability.
Helps to focus better
This might seem a little bit far fetched but bankroll management helps you to focus better on other aspects of life besides sports betting. It requires a lot of patience and perseverance. Wins and losses are two sides of the same coin.
There will be days when you will become frustrated over your losses. Bankroll management will teach you when you need to stop betting. You may even take a break from burning a hole in your pocket and start practising free blackjack, online roulette for free or any of your favourite games without spending money. If not you can consider spending the extra time to cool yourself off. Get out with your family. Go and do something which is engaging and exciting. Take a break. We promise you that this will help you in the long run!
Maintaining proper discipline
Managing bankroll properly requires a staking plan. The plan determines how much money you are going to use from your bankroll. If things go south, the limitations will prevent you from chasing loses and running your opportunity to win big. Following a staking plan will allow you to become more shrewd, cunning and calculated which is important for becoming a successful sports bettor. It makes you disciplined.
If you think that discipline is not your cup of tea, then you can always book a consultant for yourself who can advise you to do the same. A consultant will help you to make the right decisions before you make some wild decisions purely on emotions.
Bankroll management keeps you safe
The main objective of bankroll management is to reduce exposure. It prevents you from overspending your bankroll. It helps you to figure out that the bankroll is separate from your savings and you need to spend only from your bankroll.
In the long term, bankroll management allows you to not worry about losing your bankroll as you can be sure that your savings are intact to carry out your daily lifestyle and finances.