Money Management Tips and Strategies for Sports Bettors

Sports Betting Money Management Increases Betting Strategy

In regards to crafting a strong bet, sports betting money management is just as vital as handicapping. By and large, money management is perhaps the least interesting part of sports betting on the whole.  Overall a punter needs to abide to a strict money regiment so as to enhance their odds of placing a bet against the tantalizing odds of sports books. 

In the first place, the sheer odds of sports books permit every punter to occasionally pick winning teams. On the other hand, an invaluable muscle on every sports bettor is to know how to manage their bankroll. Doing so is the difference between maximizing profits or minimizing losses.

Equally important is to take your bet seriously. Although sports betting is intended for entertainment purposes only, establishing a fund strictly for betting is important. Doing so will create an actual safety net that won’t compromise or sabotage your primary account. Looking out for the future you is probably the most important critical skill to uphold as a sport bettor. 

Most importantly, if you can’t afford to lose, a punter should ultimately not be betting. Therefore, setting aside an account that strictly serves your bets is the first move in initiating a sports betting money management strategy. Therein, a punter won’t unintentionally dig themselves a financial hole, one which they could have prevented.

Money Management Techniques in Sports Betting

After setting up a bank account that specifically funds sports bets, then the next step in sports betting money management is to designate a betting limit. In the long run, determining the amount of wagers effectively elicits a cap on spending. This in turn limits any excessive betting essentially putting a spending limit to the betting session.

Up to the present time, the most preferred bankroll management in sports betting  involves betting a percentage of your bankroll on each bet. This percentage limit creates a cap again on how much a punter spends in bets. This betting strategy is commonly known as the Kelly Criterion. In brief, all successful money management plans typically use some type of variation of the Kelly Criterion to be sure. 

The original concept of the Kelly Criterion was designed and developed by Edward L. Kelly, who was a physicist working with AT&T Bell Laboratories. On the whole, the betting strategy initially served in sport bets on horse racing, in specific, thoroughbreds. However the betting strategy is relevant and topical to all kinds of gambling. Including and not limited to the stock market, blackjack and sports betting.

Understand and Implement The Kelly Criterion for Sports Betting Money Management

In sum, the Kelly Criterion is a strategic mathematical formula. It specifically bets a percentage of a bankroll on an event so as to maximize profits. To be sure, it is a strategy that is centrally based on the odds as well as the probability of winning the bet overall.

Indeed, the first problem with the Kelly Criterion system is that punters tend to overestimate their expected winning percentage. To be sure, this sports betting system is seldom used in its original form. Another key point is that since it was devised for horse racing, it is equipped to handle one bet at a given time. 

To further demonstrate the Kelly Criterion, keep reading and then implement it to strengthen your betting strategy. Using a separate bank account and setting a banking limit is pivotal to management of your bankroll. Let’s examine the central components of the Kelly Criterion. For example, take a look at the mathematical formula detailed in only three steps.

THE KELLY CRITERION RECIPE TO SPORTS BETTING MONEY MANAGEMENT

1. Multiply the odds of the event by the probability of winning.
2. Subtract the probability of losing from the number obtained in the first step.
3. Take the number obtained in the second step and divide by the odds.

The Kelly Criterion in Action

Bankroll %
Estimated Winning Percentage 52.5% .25%
53.0% 1.30%
53.5% 2.35%
54.0% 3.40%
54.5% 4.45%
55.0% 5.50%
55.5% 6.55%
56.0% 7.60%
56.5% 8.65%
57.0% 9.70%
57.5% 10.75%
58.0% 11.80%
58.5% 12.85%
59.0% 13.90%
59.5% 14.95%
60.0% 16.00%

Chiefly designing a Kelly Criterion fusion diet for your bankroll can serve to your advantage. For instance, use 4% of a bankroll and then subtracting .1% from the bet size for every additional wager made after the first bet of the day. Moreover, if it’s just one wager on just one game a day, as a result, the bet size will be then be 4% of the bankroll.

For example, if five bets are made in one day then the bet size would be 3.6% of the bankroll  which is 4% – .4%. In addition, if 11 bets are made in one day, then the bet size would become 3% of the bankroll on each play which is 4% – 1%. This half Kelly method has all tbets for the day at the same size while notably taking the number of games bet into consideration.

Creating a unit size helps in setting a limit to your sports bets. In regards to larger bankrolls, punters may consider a unit size in the range of 1-3% of their bankroll. Moreover, 1% being a bit more conservative and 3% being a bit more aggressive. On the other hand, for smaller bankrolls in which 1-3% isn’t a realistic bet size, punters may consider the 5-8% range.

Stick to betting your unit size on every game.

For one thing, professional sports bettors win 58-60% of the time. In other words, this means that even pros lose 40% of the time. Therefore, a real professional is demonstrated in effective sports betting money management. Staying focused and determined to respecting money management inherently defines the integrity of a sports bet.

The Kelly Criterion & The Power of Compounding Return

Instead of keeping the same wager, take your sports betting money management to the next level. This money management tactic suggests that you can adjust each new bet based off your bankroll. For further example, when your bankroll increases, your bet size increases. Comparatively, when your bankroll decreases, then so does the bet size. This in essence compounds the winnings when it’s going well. In addition it effectively limits losses while experiencing a slump as well.

In regard to the Kelly Criterion and the power of compounding returns, punters need only re-calculate Kelly before placing each bet. All in all, the swings are greater using this Kelly betting technique. However as a result on the other hand, the return should be higher too.

Staying Patient is the Key For Unlocking Long Term Success in Sports betting

By far, the greatest asset to a sports bettor is patience and preservation as these two traits aid in the long run. Every punter will endure losing streaks and in them, they’ll find that patience is key to breaking that losing spell. Just as the old tired cliche confirms, sports betting is a marathon not a sprint. In the same light, practicing safe sports betting money management tactics will effectively ensure your longevity and ultimately one’s fortitude.

On the whole, successful sports bettors possess common fundamental investment philosophies. For instance, a great rule of thumb is to not let emotions dictate investment decision. To further demonstrate, a punter should ultimately be able to distinguish the difference between a strong bet and an impulsive bet. While a strong bet may be against insurmountable odds, it’s a strategically chosen bet that has a set limit. On the negative side, an impulsive bet is teetering on the line of problem gambling and poor sports betting decision making. 

Sport betting money management is one of the most common areas sports bettors overlooked. However it’s intrinsic and integral with investing areas. Furthermore, bankroll management is the difference between a sports bettor. There’s the sports bettor that is out dabbling in sports betting for entertainment purposes while other sports bettor are out to make a return on investment.

Top 3 Tips for Sports Betting Money Management

3. Know your opening bets.

It’s important to calculate the total number of bets. Thereafter, divide it by a weekly wagering budget. As a result, this provides a customized unit price that a punter can afford. Now punters can use it as a multiplier. In the long run, it’s helpful in calculating the total amount that a punter can bet in a week on a game. As shown above, staying disciplined will help in preventing emotional investing and betting.

2. Establish your personal unit amount

It is also very important to set a realistic unit amount. This custom value applies to each punter’s individual investment portfolio and bankroll. All in all, a punter’s personal and financial situation should decide what is best for you. Often times, there are handicapper services, or if you  follow an expert handicapper on Twitter, they may provide you their ‘suggested’ unit value. 

  1. Be patient and adjust your betting strategy according to your bankroll.

Punters need to ultimately practice patience and adjust their sports betting strategy week by week and month by month. In the event that variables influence the team’s outcome, punters need also to keep abreast to handicapping techniques which can also in turn enhance their bet. In conclusion, a strong sports betting money management system ultimately provides punters with a better edge. As a result, effective bankroll management actually increases the bankroll which overall strengthens a punter’s chance of winning.