One of the most important cornerstones in betting is the correct money management. One of the main reasons that most punters fail in their attempt to achieve long term profits is poor money management.
Money management can be broken out into two stages:
- Setting up a dedicated bank. This your initial investment. You should treat that money as money that you have not access to. This amount should only be used only for betting purposes and not for paying bills or any other needs you may have. It should never be more than you can afford to lose.
- Setting up a staking plan. You should choose a specific staking plan and stick to that. This should be based on your risk aversion and your betting goals.
The importance of setting a dedicated bankroll is that it helps with the discipline aspect of betting. It prevents you from making irrational decisions either after a losing run or after a winning streak. By setting money aside only for betting purposes helps to take out the anxiety of losing that money.
The importance of a setting up a staking plan is tο eliminate the possibility to wipe out the bank. Through a sensible and rigid staking plan, it is unlikely that you will lose your capital.
Good money management skills
In order to achieve long term profits, you should have proper money management skills. The main aspects of that are listed below.
- The bank should be dedicated to betting. You have to treat that money as forgotten and not real. They are only there as an investment to gain profits from betting.
- Have long term goals. You should not put pressure on yourself to achieve profits every day. That will force you to make wrong decisions. Every betting session is not the same and there will definitely be losing days. You should measure your success long term.
- Good money management requires patience and discipline. You will definitely harm your bank if you are overbetting or chasing loses. You can read more about the correct betting mindset here.
- Stick to a specific staking plan. At any bet, you should place a predefined percentage of your bank.
Poor money management skills
On the opposite, the main characteristics of poor management are listed below.
- Betting without a specific plan or strategy. You must decide what are the matches you want to bet well in advance and not making last-minute betting calls.
- Staking with different size every time. This is something that most punters do. Once you have found an event that fits your strategy you must stake as you would with every other bet you place for that strategy. When it comes to trading that means not having predefined exit strategies. That leads you to stay in losing trades more than you should.
- Not evaluating a diary. Without that, you will not know where your betting bank stands at any time and what you have to do in order to protect it. You can read more about the importance of bet tracking here.
The majority of punters do not pay much attention to proper money management. But if you can stick to a specific betting plan and have discipline in your staking that will pay dividends in the long run.
I hope that this article helped you to understand better the importance of bankroll management. If so feel free to share it or leave a comment below.