Bankroll management is arguably one of the most important topics for successful online sports betting. If you’re familiar with the world of online sports betting, you’ll know that the difference between winning big or losing everything is often just a few percentage points. Because you don’t have much room to play with, properly managing your bankroll is one of the best skills you can have.
Below, we’ll discuss everything you need to know about bankroll management and how to utilize it properly for effective online sports betting.
What is Bankroll Management?
First, let’s review what exactly bankroll management is. It’s crucial to remember that bankroll management for your personal finances and bankroll management for online sports betting tips are very different. What works for one may not work for the other.
In the real world, you earn money and increase your bankroll from working, like doing your job and receiving a paycheck. In sports betting, you can only make more money by using your current money. If your account is empty, you won’t generate any additional income without adding more funds.
With that being said, bankroll management is exactly what it sounds like: managing your bankroll so you can continue to place sports bets and make a profit. The process is a long-term one, so don’t be discouraged if you see negative results at first.
How Much Should You Bet On Each Game?
Of course, the amount you bet on each game will depend on the amount of money in your bankroll. In an ideal world, everyone would have massive funds and be able to bet on whatever they wanted, but that simply isn’t the case. Even if you do happen to have a significant amount of money, first-time betters should begin with a more conservative process.
Here’s how you can decide the amount to bet on each game.
Bet 1% First
One of the most helpful sports betting tips is to begin with betting just 1 percent of your bankroll. This means if you started with an impressive $2,000, you would bet $20. Obviously, the less money you have, the smaller the bet. If your bankroll is a little more modest, say $100, then you’re looking at a $1 bet.
In these cases, if your betting amount is that low, you can increase it to a more substantial amount. You can be more aggressive with your betting at lower amounts, but always make sure you never wager anything above 5 percent of your total bankroll. A good compromise between the two is about 2.5 percent if you want to split the difference.
Use Standard Unit Size
No matter which amount you choose, another one of the most helpful sports betting tips is to make sure it is a standard unit size.
Now, why use a standard unit size? This method makes it much easier to compare your results to other sports bettors in sports betting. Not everyone begins on a level playing ground, so it seems silly to measure by the amount of money won.
For example, you may have a bankroll of $100 while your friend has $5,000. You may have a better record and more wins than your friend but make less money because you are starting with less.
Units allow a more accurate measurement of success. If your unit size is $100 and you increase that to $500, you are up to 5 units. If your friend with a bankroll of $5,000 makes $1,000, it is more money than you made, but he has only increased by 1 unit. Measuring this way also allows you to put your wins and losses in the proper context to have a clearer picture of exactly how well (or how poorly) you are doing.
Why is Bankroll Management so Important?
Now that you know what bankroll management is and how it works, you may be asking why you should bother with the whole process. Figuring out these calculations may seem tedious, so why do it?
The obvious reason is that without proper management, you’ll end up losing all of your money. Besides this, though, there are several important things to keep in mind.
Preventing Gambling Addiction
No one wants to think that they are susceptible to developing a gambling addiction, but the truth is that it can happen to anyone. You may start with good intentions, but it’s important to never underestimate the high you get when you are successful, nor the need to chase after that feeling again even when you’re on a losing streak.
While there are helpful resources available for those who find themselves in the middle of gambling addiction, it’s always better to ensure you never get into that situation in the first place.
This is why managing your funds and picking a betting strategy is so important. Proper managing can ensure that your online sports betting stays a hobby rather than an obsession. Set management rules that allow you to stick to certain limits. If you find yourself routinely surpassing those limits, you may want to take a step back.
Handling Losing and Winning Streaks
Anyone can fall victim to a losing streak, even the most seasoned online sports bettors. Even if you’ve managed to succeed in previous bets, a series of losses can make it difficult to remain disciplined with your betting.
We’re all familiar with the need to chase our losses and make up for them as soon as possible to make that feeling of failure go away. If you’ve already lost a bet, you want to make back your losses right away. This compulsion may be difficult to ignore, but it’s a surefire way to spend all of your money fast. Sticking to the rules you’ve set with bankroll management allows you to avoid these harmful patterns and trust the process.
The same logic applies to winning streaks. Winning a bet makes you feel almost invincible, potentially leading to bad decisions. You can obviously safely increase the amount you want to bet, but make sure to stick within the parameters of your management rules. This will ensure your growth is manageable and realistic.
Conclusion
There you have it: everything you need to know about sports betting and bankroll management. Whether you are new to this process or a seasoned bettor simply looking for some guidance, educating yourself on bankroll management is necessary for all betters.
Now that you’ve reviewed exactly what bankroll management is, how much you should bet on each game, and reasons why the whole process is so important, you’re ready to start placing your bets!