Importance of Betting Bankroll Management
Before you take your first steps in sportsbooks, it is essential you know some rules about money management in sports betting. Successful bettors are good money managers! Here you’ll see why it is essential to manage your betting bankroll.
What are bankroll and stake in sports betting?
A successful bettor does not gamble his money cheerfully. To know how much money we should risk in each bet, it is necessary to understand two concepts: bankroll and stake.
The bankroll is the amount of money you destine to bet. Good bankroll management is essential to be profitable in the long term.
Another important concept is the stake, referring to the amount of money invested in each bet. When we start as bettors, the stake should not be more than 5% of our bankroll.
Before starting to place wagers, we must decide whether we will use a fixed or variable bankroll.
As its name implies, with a fixed bankroll the amount of money with which we started to bet, or initial bankroll, will remain constant. Therefore, the bankroll percentages or stakes, we will bet each time will always be calculated based on the value of the initial bankroll.
That is, if we allocate $ 50 to bet, we will always calculate the stake percentages based on that $ 50, regardless of whether we later win or lose.
On the contrary, with a variable bankroll, we will change the calculation base after each bet. The advantage of this last method is that if things go well, we could bet more. If not, we will be more conservative.
How much money should you place in each sports bet?
Among the best-known methods to define how much money we will invest in each bet are:
- Full Stake Method: This method considers the maximum percentage of the bankroll that we are determined to invest in each bet. We also take into account the degree of confidence we have in the bet.
- The Kelly Criterion: considers the success’ probability percentage that the bettor believes the bet has, as well as the odd assigned by the bookmaker.
- Fixed Profit Method: with this system, we define a percentage value of fixed profit to obtain. Besides, it takes into account the odd assigned by the bookie.
For a novice punter, it is best to start from a relatively small bankroll and be willing to lose. It is preferable to wait until you have a bankroll that allows you to risk more in your bets.
How to expand your bankroll in sports betting?
Some welcome bonuses that you can find in bookmakers will be advantageous to increase your bankroll. In this sense, take advantage of the bonuses offered by sportsbooks. If the conditions established for its use are fair, you should make use of this additional betting capital. The best bookmakers regularly launch promotions and bonuses; you have to be aware of these offers.
The search for value bets and the correct management of our bankroll will lead us to get the most out of our money. The crux of knowing how to manage the bankroll is that it will help us to avoid reducing it to zero.