As we all know by now, only 2% of bettors out there are successful, while the other 98% are losers. Those 98% fund the bookmakers on a steady basis. They may get a huge win from time to time but if you take a look at their overall stats they are big time losers.
One of the most important weapon to have in your arsenal as a successful sports bettor is a proper Bankroll Management. It goes hand in hand with other must-have abilities, like event analysis, patience and discipline, but the reasons I lean towards proper Bankroll Management as being the most important, are:
- no matter how much you analyze an event, spending hours taking into consideration all the aspects of it, once the match starts nothing is 100% guaranteed to go as planned and if you don't have a proper bankroll to support those unpleasant surprises you risk losing all your money on a few losing bets;
- patience and discipline are also essential if you want to make it in this betting world, but they apply mostly to how you should handle a losing bet and the mindset you must adopt. Needless to say if you don't respect your Bankroll rules and go wild after a loss trying to recover your money, most of the times, all you manage to do is lose more money.
Very Important: Bettors should NEVER place bets with money they cannot afford to lose! Always bet using money from your Bankroll, which should be totally different from your personal money (day to day money, savings, living expenses - you get the point).
One of the most common mistake that I've heard from fellow bettors is not respecting the number one rule of Bankroll Management and that is to never exceed your MAX BET!
And there are 2 main reasons for making this mistake: 1st is the overconfidence in a bet (they believe that match is 100% sure - and there is NO such thing in sports betting) and 2nd is the desperate need to recover a previous loss. Here is where Patience and Discipline come in handy and why you need to develop a strong mindset, but more on that coming in future articles.
Here is the way I manage my Bankroll and the way I advise my members to do it too.
Bankroll is always 2.000 units. I use units because every bankroll differs depending on people's financial possibilities. Whether someone has 500€, 1.000€, 2.000€ or 10.000€, all these amounts should be considered as 2.000 units. Now, with a simple math calculation, we can see that for the 1st guy with 500€, 1 unit means 0.25€ (500€/2.000 units), for the 2nd guy with 1.000€, 1 unit means 0.5€ (1.000€/2.000 units), for the 3rd guy with 2.000€, 1 unit means 1€ (2.000€/2.000 units) and for the last guy with 10.000€, 1 unit is 5€ (10.000€/2.000 units).
The MAX BET for everyone should not exceed 5% of Bankroll, meaning 100 units (5% of 2.000 = 100). So, coming again to our 4 guys, the 1st one has a Max Bet of 25€, the 2nd has a Max Bet of 50€, the 3rd has a Max Bet of 100€ and the last one has a Max Bet of 500€. REMEMBER, NEVER EXCEED YOUR MAX BET no matter how confident you are in an event or how nervous you are for losing a previous bet and trying to recover!
Whenever you reach a profit of 2.000 units, meaning you've Doubled Your Bankroll, you recalculate your Max Bet. I will give the example just with the 1st guy, but it clearly applies to everyone. Let's say the 1st guy with a 500€ Bankroll and a 25€ Max Bet reaches 1.000€ with the Bankroll, now 1 unit for him means 0.5€ (1.000€/2.000 units) and his Max Bet becomes 50€ (100 units, 5% of Bankroll). So now, his Bankroll is double, his Max Bet is double and so will his profits double.
The article Sports Betting as Investment is all about how you can reach a certain Bankroll Goal and how you can make a living out of Sports Betting on a monthly basis.
Getting back to the Bankroll rules, 2 main things to keep in mind at all time:
1. MAX BET is ALWAYS 100 units (5% of Bankroll). Never exceed that no matter how much confidence you have in a match or how angry you get after losing a previous bet and hoping to recover!
2. ALWAYS count your profits at the end of the month. Sports Betting is always about Ups and Downs, it's never a straight line up! There will be winning days and losing days, but the most important thing is to show profit at the end of the month. So think long term, just like any other investment.
I did my best to explain how a Bankroll should be properly managed, but I can't give you Patience and Discipline. That is totally up to you!
It's better to suffer the pain of discipline now, than to suffer the pain of regret later!