Important Tips for Managing your Bankroll Effectively
The bankroll (also known as ‘game bank’) is the total amount of money that you have decided to set aside for sports betting. This amount can increase or decrease over the time, whether because as a player you might have a series of successful or unsuccessful bets or because you might decide to change the amount either by increasing or decreasing the bankroll. Managing effectively your bankroll is critical as it can determine your success. This is why competent management of bankroll is considered to be the key to success for experienced bettors. This article offers some important tips for avoiding common mistakes made by beginners.
Browsing the internet, one can find so many stories of people that claim to have made big money from sports betting and gambling. Such stories often catch the attention of inexperienced players and beginners who are tempted to follow, rather blindly, the advice generously offered by the people who claim to have succeeded. However, rarely anyone succeeds by repeating what others have done and it is crucial that any advice should be critically examined and evaluated.
What is important is to understand that no method or strategy for managing your bankroll can actually guarantee that you will avoid losses. So, a strategy can’t and won’t affect the accuracy of your forecasts, but it can help you remain consistent to a certain system, avoid impulse, hasty, and misjudged decisions.
Minimum bet amounts are ineffective
Inexperienced bettors often believe that one way to avoid losing money is by betting only small amounts. This can be the case, especially when you have not decided to follow a certain strategy and so, betting less and more conservatively prevents you from losing lots of money. But it is ineffective when you have already decided on a strategy and you have chosen how to play, because it won’t generate significant winnings in the long run.
Bookmakers are not charities and this is something that needs to be made clear to all bettors. They are enterprises whose primary goal is profit and they usually have a strong and competent analytical staff to make sure that they attain their goal. The odds offered already include what is known as margin – and this is why bookmakers will always have profits. So, if you ever find something that you think is a mistake, you should certainly take advantage of it to the maximum. Like in the stock exchange, if someone finds a stock at a low price (at a favorable price) and anticipates it to rise high, then buying it is a good choice.
Experienced bettors’ winning percentage is rarely above 50, which means that almost half of the bets are lost and so more than half of the net winnings is for compensating losses. Under such circumstances, playing only small amounts has no meaning, as the final profit will be minimal or even negligible.
“Kelly Criterion” or automatic bankroll management
John Kelly, an American scientist developed a financial betting strategy in 1956, which today is known as the Kelly Strategy or Kelly Criterion. It is a mathematical formula containing several variables including important ones such as the bookmakers’ odds per event and the bettors’ calculated probability that the event will come true. In simple words, the “Kelly criterion” states that the amount of the bet should be proportional to your advantage (that is, the probability that the bet will win). Getting familiar with the betting world makes a novice player understand that the Kelly strategy is in fact a very useful and helpful formula. As you gain more and more experience, you become more competent in managing your bankroll automatically, which means that you will be able to easily estimate the percentage of your bankroll that should be bet in an event that is a potentially winning one.
While in the beginning you may experience psychological stress – as you will manage large amounts, once you are able to more adequately estimate the risks, this will no longer be a problem. Successful players generally state that, becoming competent in analyzing and assessing probabilities, makes you more confident and less attentive to problems such as game account management.
Be cautious of other people’s opinions
It has been already mentioned that the basic asset of any player is his/her analytical skills. Novice bettors and beginners, however, can be subject to frauds especially because they can easily fall into the trap of following the advice and listening to the opinions of people who pretend to be experts in betting. Such pseudo-experts appear more and more often on the internet and they try to ‘sell’ access to knowledge in exchange for fees. But the value of this knowledge is very doubtful and questionable.
The most important problem with these fake experts is that they have no responsibility or liability. You can find numerous “100% bank management strategies” and other similar material on the internet, but all they really do is siphoning money from gullible people and easily convinced novice players. In fact it is highly unlikely that successful bettors will ever reveal their secrets, especially for amounts like 199 rubles.
The same holds true for paid tips as well, which are also widely available on the web. You can’t be sure of the analytics that have generated such tips, the basis on which forecasts are made or even if there has been any analysis at all. If experts and tipsters maintain open statistics on specialized sites providing info on the number of correct forecasts and the profit levels, the same is either not there, or it is falsified on paid services.
Profit is made by investing
A basic rule in the world of finance is that money makes money and in order to generate profits you have to invest money. This rule also applies to the world of betting. Without cheating with analytics and having at least half of your bets won, then net profits will increase by investing more.
It is quite easy just to withdraw winnings immediately to your bank account, but this tactic will hardly be successful in the long run. It is important to remember that sometimes there are losing streaks in betting and the game bank may be in the red. To prevent this from happening, there must be an amount in the reserve for a certain percentage of the bankroll. If part of the winnings is used to increase the game bank, then in the long term it will pay off many times.