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Money Management in Sports Betting
Money management, or how to run your bank in the best way, is one of the most important skills that every successful bettor must have. Many beginners in sports betting ignore this vital thing and believe that it is enough to be just talented at predicting sports results. Of course, talent and the ability to predict are essential, but they are not enough. Without proper money management, every and even the best sports trader will sooner or later end up in the red.
Introduction – What Exactly is Money Management in Betting?
Every punter’s working day starts in a more or less identical way. He opens an offer of matches that are played that day (or the next day if he likes to play early market), looks at available sporting events, opens the favorite betting site, and starts looking for games worth playing.
It is a painstaking process that requires time, attention, and focus. Once the bettor decides which games are worth playing, taking into account all relevant information such as news of injuries and suspensions, weather conditions, tactics and statistics, data trends, as well as the history of mutual duels, it moves on to the last step, and that is placing the bet at the betting site that has the best odds. Finding the best odds, and lowest margins is essential if you want to make money from sports betting!
At that moment, knowledge of money management or, as we have already said, the skill of running your betting bank comes into play. It is best to look at money management as managing finances in your company because sports betting is a kind of business that you run. You invest your knowledge, time, and money to be profitable in the foreseeable future.
Money Management and Betting Systems
The first and foremost thing about good money management is determining how much start-up capital you are willing to invest in sports betting. Our recommendation is to invest money you can afford to lose without burdening your family’s daily budget. So, you can never bet with more money than you are willing to lose because sports betting is a high-risk business. This advice is also good for other gamblers, that prefer to play various games of chance in online casinos.
There are several theories on the best way to manage money, and we will tell you a bit about each of them in this article. It is essential to decide whether you will use the same stake for each bet (flat system) or have different stakes depending on how confident you are in a bet (unit system). From our experience, a flat system has proven to be more efficient. Here is how these two systems differ:
Flat system – this system uses the same stake for each bet you play. It doesn’t matter if it is a small odd (1.20) or a large one (4.50). Each bet is always taken with the same amount of money. This method is best to show how successful you are and what your hit percentage is, as well as what your return on investment (ROI) is. Also, it is pretty difficult to put yourself in the awkward situation of going bankrupt with this system because this is a conservative way of sports betting that does not have large bank fluctuations.
Unit system – with this system, the goal is to use a different stake size for each bet in relation to how much value you see in the odds. The scale ranges from 1 to 10 units. We don’t think this is a sound system, especially not for beginners in sports betting. Namely, when they see that a tipster has placed a 10/10 bet, they think that the same bet is 100% safe and invest large sums of money. This type of betting system makes it much easier for bettors to go bankrupt.
How to Use Money Management
As your sports betting budget is what determines whether or not you are successful in sports betting, you need to be highly disciplined. Every wager you place must be within the bounds of good money management. It doesn’t matter if you play in a traditional or online sportsbook; reasonable bank control is most important.
The general opinion (with which we also agree) is to invest from 1% to 5% of your bank. 1% is quite conservative, but it gives you space to research sports betting without much fear of going bankrupt. 5% is considered highly progressive and is not recommended for beginners in sports betting. If you play disciplined according to this model, there is a possibility to make money on betting.
Our recommendation is to stick to the golden middle. 2-3% per bet is the perfect way to take care of your bank and the most cost-effective way of money management. So if your bank is 1,000€, each bet should be 20€ or 30€.
When you master the skill of using money management, you will immediately see that your bank is, if not bigger, then much more balanced. At the end of each month, make a cross-section of the balance and, if necessary, recalculate your stake and your percentages. Also, register in one of the recommended sportsbooks because playing in safe and licensed bookmakers is extremely important.
How to manage money when betting?
There are a few simple rules that you should follow, which will help you manage your money more efficiently. Most importantly, you should separate your betting and your life budget. That way, you will protect yourself from the serious trouble of spending too much money on betting. Also, you should keep detailed records of your bets and learn from your mistakes. Finally, you should never wager more than you can afford to lose.
What is the most profitable betting strategy?
It is hard to find a perfect and long-term profitable betting strategy easily. Every bettor has a different style of play, and thus, a specific betting strategy can be profitable for some, while for others, the same approach wouldn't work. We suggest that you test a few strategies and determine which one suits your betting style.
Is sports betting legal in Florida?
Right now, there are no “legal” online sports betting sites in Florida. Currently, bettors from Florida can use offshore operators, but none of them is considered to be fully legal by current legislation. We believe that in 2022, Florida will finally allow online sports betting. Until then, Gators and Seminoles fans will have to be patient.
How does sports betting work?
Online sports betting and gambling are the fastest-growing entertainment markets in the world right now. Even though it seems like an easy discipline, sports betting is pretty demanding and time-consuming. In order to be profitable from sports betting, you will need to master a specific set of skills, from discipline to money management.
How old do you have to be to sports bet?
Every country in the world has different rules when it comes to the legal age for sports betting. In the US, all but four states require residents to have 21 years old to place wagers. Those four states (Montana, Washington, New Hampshire, and Rhode Island) have a lower age limit, and there you can place wagers if you are 18 years old.