Money management is something often overlooked and also something that is vital in being successful at sports betting. In fact there are many good handicappers that can pick games at a high rate of return but they fail to actually pocket anything because they don't have clear program to do so. I am going to attempt to sway those of you that are floundering with this most important part of sports wagering. This is something that I posted at pregame.com a while back and thought it was blog-worthy.
BANKROLLOne must have a clearly defined bankroll. A good bankroll is defined as the amount that you have allocated and set aside toward your wagering and not just what you might have in an online book at this very moment. It should be an amount that you can comfortably lose without putting yourself in a bind or changing your lifestyle in a dramatic way. For the sake of this example I am going to pick a bankroll of $5000. Yours might be higher and yours might be lower.
BANKROLL UNIT BETA bankroll unit bet is simply the amount of money you would wager per bet based on a percentage of your total bankroll. I recommend 1.5% per Unit based on my plays but on average my usual play would be 2 Units or 3%. I will also use that for this exercise. By limiting your average bet size to just 3%, you are in a position to weather any storms that will come your way. Your bankroll is going to flucuate much like the S&P on Wall Street. But the goal is to always see your money make an increase over a period time much like a quality stock will do. My Money Management Plan allows you to do that and also allows you to increase your wagers at safe intervals.
THE PLANThe Plan is a very simple one. Start will 3% wagers and increase your wagers as your bankroll increases, but do it at safe 20% intervals. This will allow you to get well over and beyond any real possibility of going back to the previous level but will also increase your chances of pocketing more money as your funds grow. I had hoped to build a chart and I will but for now I am just getting the info up as I feel it is very important. Take note that because I am using 3% Bankroll Plays as an example, it would take 6.67 Units won (3% X 6.67 = 20%) to reach the next level. That works out to be about 1.55 Units per week if you set a goal of moving up each level monthly. (1.55 X 4.3 weeks) It is important to note that once you reach a level, you should keep your wagers at that level until you reach the next one, either up or down. Now, for the fun part. Let's see what results would be based on these facts....
BANKROLL UNIT BET UNITS WON$5,000 150 6.67$6,000 180 13.34$7,200 220 20.01$8,600 260 26.68$10,300 310 33.35$12,300 370 40.02$14,700 440 46.69$17,600 530 53.36$21,100 630 60.03$25,200 760 66.70$30,200 900 73.37$36,300 1090 80.04
RESULTSAs you can see, by winning 6.67 Units per month, in one year, your bankroll would increase from just $5000 to over $36,000, yet your overall risk would remain the same, just 3% per wager. By increasing your wagers at pre-determined points and keeping your wagers at a basically even keel, you will be more successful than you have ever been before. Of course, at some point you will want to stop increasing your wagers as you reach your own comfort level. That is when the real fun begins as you start dragging your money of your accounts. At this point, all you need to do is to make sure you are getting good advice on what to bet or have a plan yourself to accomplish that same goal. I have certainly reached my comfort level and you will too if you follow this program. I hope that you choose to do so.
Thanks Greg I appreciate your insights and look forward to tracking all the action here on the Forum. It's all immensely interesting. Best of luck!
going to favorite this. thanks for the help. im actualy finding out that i can move up QUICKER then i was going to. so im excited. thanks
Good Luck to All!
There is No Minimum Bankroll for Joe Public, Joe Sharp or anyone. Your current financial status should determine that but it should be something that you can handle comfortably...
Of course if you are investing in Picks Advice, you must incorporate that into your program. 6 Months of Betting advice for $600 at a starting Bankroll of $5000 puts you in the whole by 6 Units at 2% Wagers ($100 to start)
Obvoiusly there are other ways to obtain Free Advice and a small BR most likely will make that the better option..
So if you're a certified square, enjoy the gaming action, when does it become cost effective for Joe Public to use a standard picking service based on your money management principles? What minimum bankroll amount would Joe want to consider, let's say, for the current CFB and NFL season given an average end of season win-loss ratio? (If the average win-loss ratio is typically negative, that would be useful cost data as well.)
Enjoyed the article.
Very informative. Thanks for the education. Cheers!
well you can't just win 6.67 with different odds and reach a new level ?
It does not Matter what Odds they are as long as you WIN. This MM Blog is about Managing Money. That's it..
You are asking questions about stuff for people a lot more smarter than I..
In your example you have to win 6.67 units to reach a new level but what odds should these wins be ? (i mean how many times should the odds give you money back, like odds 100 and odds is x2 = u win 200)
Mads4400, that's a whole new blog....It is not so important as to what sports you bet, just as long as you can win at a reasonable rate...
Perhaps you already are doing so. This is specifically about managing your winnings to obtain the Maximum amount of Bankroll Growth without putting undue risk upon it...
Mabye i miss understood all of it, what type of sport are you betting at ? and what bets are good to look our for. also I'm not sure what a handicap is
Mads4400. I am not sure if I understand your question. Not sure what you mean by "Rate." And not sure what you mean Odds of "2.0."
Just need a little more info here...Thx..
Im not so much into betting yet but i really try to become :)
The only thing i don't understand here is:
What should i bet on, and what should the "rate" be if you know what i mean - should i only bet on games that give odds 2.0 or what should it be ?..
I got 500$ and i really want to try your method when i get this question answered, Greg :)
"Dumb question about bet size: Assuming we're doing straight bets at -110, should I be betting TO WIN one unit, or is one unit my wager?"
I play to win but risking is just as good as long as it is consistant in how you do it..sorry for the late response Sami, just saw this..
Great article again! I took heed to your money management blog a while back and it has worked. It takes a lot of self-discipline to only wager the allotted amount based on ones bankroll along with sticking with their system through the ups and downs. Great work, this blog defines why I love Pregame!