Remaining disciplined and effectively managing your betting bankroll is a key component towards the success and sustainability of any bettor.
Once you’ve found a value selection and are keen to go ahead with your bet, knowing how much to bet is vital, for this is hugely important in gambling responsibly so you have a clear idea of what you’re willing to risk. After all, you don’t want to bet beyond your means and risk losing money that needs to be allocated for other aspects of your life.
Trying to be a profitable punter? Check out our guide to becoming a professional sports bettor.
Importance of Bankroll Management
Effectively managing your bankroll subsequently allows you to gain some control in your wagering, so you don’t fall into bad habits like chasing your losses and overstaking. Moreover, you’ll also find you’ll be able to handle losses and exercise better judgement in your selections.
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When starting out, it’s a good idea to start with a bankroll of somewhere between 100 and 50 units and only bet in small amounts (between 1% and 2% of your bankroll) as you learn the ins and outs and familiarise yourself with bankroll management.
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Delving deeper into staking strategies, and these can essentially be divided into two categories – fixed and variable. Fixed plans are the simplest to understand, which makes them best for beginners. These typically fall into level and percentage staking, with level meaning you stake the same amount on each bet and percentage staking seeing you bet the same set amount of your current bankroll for each wager.
Courtesy of Pinnacle
Moving onto variable methods and these are more complicated, with them adhering to certain parameters like confidence level and potential return. One high profile system that gets differing reviews, but has its merits, is the Kelly Criterion. This formula basically encourages you to bet more depending on how great the value is, but it’s up to the bettor to accurately determine outcomes.
Courtesy of Betfair Trading Mind Games
Seeing as the Kelly method has seen many amendments over time, the Fractional Kelly approach is considered a sound choice, where you only bet a fraction of the recommended bet. Despite inherently reducing your potential winnings, evidence has suggested that this is a strong long term option, as it takes into account the odds on offer, the probability of your selection bearing fruit and the subsequent value identified while not using a large portion of your bankroll.
While the principles of having a staking plan are one thing, sticking to them can be a challenge. But if you are disciplined, understand the significance of bankroll management and stay in control, you’ll find betting much less stressful and enjoy it much more. And crucially enhance your chances of winning.
Put your new-found bankroll management skill to test.