Bankroll management is one of the most important aspects of online sports betting that can become your supportive step in the success ladder. The 2 main qualities of a successful and professional sports bettor are to understand the value in a specific sports betting market and proper management of bankroll. Overlooking or ignoring any of these needs can pull you back from becoming a profitable punter. Once you have identified the market value, the very next thing you require is the ability to effectively manage your betting bankroll regardless of how much and how frequently you want to place a wager.
Still not convinced? Learn what is bankroll management and its need.
What Is Bankroll Management?
Bankroll is the total amount of money you have saved for online sports betting (affordable for both investment and associated risk). And, bankroll management is all about properly managing your betting bankroll to ensure that you would not practice what you could not easily afford.
Importance Of Bankroll Management
The first and biggest advantage of bankroll management is gambling responsibly. If you have the right system, you will place a wager within your reach and will be able to earn more than what you have invested. On the other hand, when this system is not applied properly and you keep on putting the hard-earned money on every bet, then you’ll end up risking money that you cannot afford to lose despite proven winning strategy and percentage.
The top 4 benefits of sports betting bankroll management are as follows –
1- Bankroll Management & Winning Streaks
Managing a bankroll helps in avoiding the situation of excessive betting when you’re going on a winning streak. Might be you don’t know but winning streaks often have some limitations. Increasing the bet amount regularly when you’re on the winning line can result in paying back all previous winnings once this streak ends. Bankroll management will help you in putting only that amount which you have set aside for sports betting. You can enhance the stake amount if increases your bankroll too.
2- Bankroll Management & Rational Decisions
Effective sports betting bankroll management helps in making logical and favorable betting decisions that can make you a professional punter. Remember that putting all focus only on earning the lots of money can result in the wrong and unfruitful selections. To play on the safe side with fewer chances to lose, it is essential to practice rational decision-making process that guarantees satisfactory results in the long-run despite your purpose behind sports betting.
3- Bankroll Management & Losing Streaks
With bankroll management in place, you can rest assured that you don’t chase your losses. Sports betting is all about wins and losses. Nearly every punter go through this phase. Some of the bettors consider it as their bad luck and lose the control feeling as if they are constantly losing the bet. They eventually start placing an increased wager thinking that they’ll get back all the wins when their luck goes in their favor. But, this puts them in the danger. By understanding how much to bet with sound bankroll management, you can prevent the desire to chase losses on a losing streak.
4- Bankroll Management & Withstanding Losses
Besides preventing you from chasing the losses, bankroll management also resists multiple losses without going out of the budget. If you keep placing the bet even when your bankroll size decreases, you are more likely to lose everything. By betting only a certain part of your fixed bankroll, you can avoid the big losses as you can correct the mistakes using some proven strategies that result in good decision making.
It is always recommended all punters not to gamble with the amount of money they need to meet their everyday living expenses such as paying electricity or phone bills, child’s tuition fee, etc. Confused about how to manage your bankroll? Use a step-by-step guide to manage your bankroll in sports betting.
3 Important Steps To Manage Your Online Sports Betting Bankroll
To avail the full advantage of bankroll management, it is essential to implement this process in a step-by-step manner. Following are the vital steps that professional punters use to regulate their bankroll:
1- Bankroll Size
Before you set your betting size, examine your current personal financial situation and your own comfort level. Never ever go with the stake that you cannot afford to lose. Determine how much you will be ready to lose and then decides the total amount of time you are interested to spend on sports betting. For example, if you have planned to bet only in 4-5 matches of IPL League, then don’t invest your set budget in placing a wager on all days of IPL League. Continuous deposit and withdrawal will make tracking a bet more complicated.
2- Unit Size
So, you have selected the bankroll amount you are willing to invest. Now, it’s time to figure out the percentage of your set bankroll you will bet on a particular sporting event. Before using several bankroll management systems, determine your unit size (starting amount of money you’ll use for sports betting on a bet-to-bet basis) to have a proven record of profitability. Unit size may be one or two percent of total bankroll per single bet. However, if you are a skilled, trained, and experienced punter with sound sports knowledge, stay between 1-4% of your total bankroll. Going beyond this can negatively affect your bankroll.
3- Bankroll Reevaluation
Make sure that you keep a record of all your bets using a spreadsheet. Track everything in this sheet such as the date & time of the game, total/spread/line, who you are betting against or for, weather, total numbers of units you play, etc. Once you track a bet, reevaluate your bankroll by recalculating the unit size across the betting profession. On the basis of its result, make the necessary adjustments.
For example, stop betting more and more when you are losing in the long run. Decreasing the unit size is a secret key to avoid losing excessively and quickly. Make sure that you follow the minimum betting limits of a selected sportsbook. If you’re on the winning streak, keep a healthy percentage of betting size ensuring it perfectly aligns with risk tolerance. Please note that you would never place a wager of over 5% on one specific sports event.
5 Best Strategies To Effectively Manage Your Bankroll
There are various bankroll management strategies that help in using the options that perfectly fits your individual betting style and generate the best results. The most useful models you can use for managing a sports betting bankroll are described below –
- Percentage Model– It is the percentage of fixed bankroll that provides the advantage of a winning streak as you bet more. You can rest assured that you place a wager of 1-2% of your bankroll irrespective of your winnings or losses.
- Fixed Unit Model– According to this model, you will bet 1 unit on every pick despite the odds, recent loss or winning streak, confidence level, etc. This is the simplest model to follow and make tracking wins/losses easier.
- Confidence Model –This is the best variable model for punters, who has an accurate confidence level. Based on your confidence level, you can choose units. In comparison to fixed and percentage model, this model makes a player more profitable.
- Potential Return Model – This is a variable model that considers odds & level of risk to allows a bettor to wager for winning 1 unit rather than risking that one unit. This model is best for you if you have the ability to place fair wagers.
- Kelly Criterion Model –This model takes everything into consideration and is generally recommended to the expert gamblers. You have to determine the accurate percentage of time when you’ll win the bet. Although it is a difficult system and consists of large numbers of variables, it can be profitable for you if you are stable with the percentage of your winnings.
Please note that the Kelly Criterion Model has numbers of editions as it undergoes several changes over the years to provide gamblers with winning chances. It includes The Full Kelly, The Fractional Kelly, and The Constant Kelly. Even though the basic of all versions remain the same, but each of them has their own insights. Among all these editions, 10% fractional Kelly method is highly recommended as it protects your complete betting bankroll while making several wagers on sporting events played on a daily basis.
If you’re a beginner, then manage your bankroll using the most basic model units to avoid the complexity and get profitable with your wager. Once you master those strategies with complete perfection, move to the next model. And most importantly, don’t forget that to become a successful and winning sports punter, it requires sufficient time, patience, and detailed research to master the art of gambling.