Investing on any field requires a control about what we invest and how we evaluate profits and losses. In sports betting, the bankroll management appears as a tool of controlling the wagers and the amounts invested in each event to improve the performance.
What is bankroll management in sports betting?
Taking good care of your wealth (in this case the money you’ve deposited on a certain bookmaker) is the basic duty of each bettor. We can make a simple parallel with the day-to-day life and clearly understand the importance of this management for your progress within this world.
Can you manage your expenses in relation to your salary?
Monthly, the ordinary citizen receives an “X” amount, and with it, he has to calculate what he has to pay, buy, invest, etc.
The poor management of the money received is surely one of the great problems of the citizen, which leads to most people ending up in debt.
In sports betting, the premise is the same. Managing the money you’ve invested on the bookmakers poorly will end up leading you to the same old path: losing everything, which means “bankruptcy”.
A lot of bettors (most of them, actually) don’t have any control over their bets, or over the amount they stake in each bet.
They simply deposit, bet compulsively with random amounts, lose most of the time and end up being left wth nothing.
That happens for a couple of reasons:
• Lack of bankroll management
• Lack of analysis
• Lack of emotional control
The psychological aspect is tied to the first two points
That’s because, in first place, not making a prior analysis of where you will stake your money and also not having a clue of how much to invest on each bet makes you lose more money that you win.
That heavily affects the psychological state of the bettor and it is normal, since most people get shook up when they see their money going down the drain. But that happens precisely because they don’t have a guideline to follow.
Then, firstly, controlling every penny invested and then creating strategies to invest more.
Examples of ways to manage your bankroll
• Dividing by units
This way, we split our bankroll by units, which means, we take the entire bankroll and we split it into equal portions (units) so that we can then define some betting strategies.
Amount deposited on Bet365: 1.000€
Units: 20 units
Value of a unit: 50€
On this example, we divide the bankroll in 20 equal portions, and we have the unit as a point of reference (50€).
Dividing by 20 units might be very aggressive for some bettors, so whoever desires can divide by 30, 50 and even 100 units, depending on the size of your bankroll.
The important thing is understanding that your unit is the one you’ve planned, understanding what’s the average return per unit and that this value can’t be changed randomly (betting 50€ on a match and 63€ on the next).
Bankroll management: The idea here is respecting the units
I tend to utilize only 1 unit always, and in the case I’m very confident, I wager 2 units at most on the same event.
But you can create your own strategies.
• Dividing by bankroll percentage
There are some people that control their bets through a certain percentage of their bankroll. On the example above, the units stayed the same, only changing the amount that was invested, considering the confidence.
Here, the betting amount is a percentage of your total bankroll on the bookmaker.
Amount deposited on 1XBet: 1.000€
Percentage defined: 5%
Value of each bet: 50€
Although the value is the same of the example above (50€), the pattern changes, because the management considers the total amount of the bankroll, changing according to profits and losses…
1st Bet: 50€ (stake amount) x 1,80 (odds, hypothetical) = 90€ returns (50€ invested + 40€ profit)
Total Bankroll: 1.040
2nd Bet: 52€ x 1,80 = 93,60€ (41,6€ profit)
Total Bankroll: 1.081,60€
3rd Bet: 54,80€ x 1,80 = 97,34€ (42,54€ profit)
Total Bankroll: 1.124,14€
4th Bet: 56,20€ x 1,80 (Here our bet is lost) = -50€
Total Bankroll: 1.074,14€
5th Bet: The amount invested will be 53,70€
On this case, the stake value changes in accordance with whether we win or lose.
We can see that on the 5th bet, the amount invested is lower than on the 4th bet. That means, there is always a safety net, so that the bettor doesn’t go bankrupt, or wagers too much.
Just like in the first example, the percentage value can be changed, as the bettor becomes more comfortable. However, I believe that the maximum value should be 5% in order for you to have some sort of protection.
• Flat stakes
This case is a lot simpler: define the value you will invest on each bet and maintain it for a certain period of time.
This can also be considered a unit method, however, there isn’t the possibility of changing the value invested, even if you are very confident on a certain bet.
If you define that the value is 10€ (hypothetical value), maintain that same stake always. Until you review your profits and losses and you’re comfortable increasing or reducing it.
The important thing here is showing that it is essential that you control your expenses. This avoids the possibility of a wonderment and heavier investments than they should be, when the moment isn’t right, and also protects your investments when not on a hot streak.
Those that manage their bankrolls well are able to be on a more well-structured state of mind, managing to make better analysis and in the mid-to-long term, they will almost always be in the profit. Good luck!