If you discount those who make frequent punts at massively long odds, what do you think is the number one reason a sports bettor goes broke? Would it be surprising if we told you it was a lack of bankroll management? Whether you are a seasoned bettor or just dipping your toes into the waters of wagering, you must recognize bankroll management’s pivotal role in your overall success.
What is Bankroll Management?
Bankroll management refers to managing the funds you allocate for sports betting. It is more than having a lump sum set aside for placing wagers; it involves dividing that sum into smaller units to mitigate risk and keep you in the game. Whether you prefer betting on soccer apps online, place wagers at the racetrack, or are on first-name terms with the cashier at the Caesars Palace sportsbook, you must practice bankroll management.
The first step to bankroll management is allocating funds for your sports betting endeavors. Your bankroll must only consist of money you can afford to lose. Suppose you set aside $500, but little Johnny has a school trip in the next couple of weeks that costs $200, and you have no way to pay for it other than dipping into your bankroll. Your bankroll is actually $300 in this scenario.
Remember, bettors do not always win; bookmakers would not be in business for long if they did!
Why is Bankroll Management Important?
First and foremost, bankroll management is about safeguarding your capital. You can no longer bet if you go broke, making going broke the worst possible situation for any sports bettor. By carefully allocating your funds and altering your bet sizes based on your bankroll’s size, you mitigate the risk of a string of losses that could decimate your bankroll. Essentially, it is about playing the long game and ensuring you have a cushion to fall back on if Lady Luck is not on your side.
Sports betting can send you on an emotional rollercoaster like no other. Wins make you feel on top of the world, while losses can trigger despair and frustration. Effective bankroll management helps to instill discipline, keep your emotions in check, and keep a clear head for decision-making. Having a clear plan helps prevent making impulsive or emotionally driven bets, which are never a good idea.
Following bankroll management puts you in a position to optimize your returns in the long term. A disciplined approach allows you to spread your risk across multiple wagers rather than risking a large percentage of your funds on single bets.
Wager Sizing Tips Based on Your Bankroll
The size of your bankroll determines the size of your wagers, not the other way around. Start by establishing your unit size, the amount of money you’ll wager on each bet. A common rule of thumb is to risk only 1-5 % of your total bankroll on any bet. For example, if your bankroll is $1,000, a 3% unit size equates to $30 per bet. You can bet smaller amounts for riskier, long-shot wagers but have a larger unit size for shorter odds. However, it would be best to never stray from the 5% unit size.
Adjust your bet sizes as your bankroll fluctuates. Consider increasing your unit size if your bankroll has grown following a winning streak. Say your $1,000 bankroll from above now stands at $1,500, and you decide to keep a 3% unit size; you can now wager $45 per individual bet.
If you follow bankroll management correctly, your unit sizes should reduce accordingly if you experience a rough patch. If we stick with the 3% unit size and your bankroll has shrunk to $800, your maximum bet per wager should now be $24.
This adaptive approach ensures your wagers remain aligned with your bankroll’s current state.
Chasing losses is one of sports betting’s cardinal sins and should be avoided at all costs. Chasing losses often results in a sports bettor increasing their bet sizes in an attempt to recoup previous losses quickly. This behavior is reckless and can lead to further, more substantial losses that put your bankroll in jeopardy. Please resist the temptation to deviate from predetermined unit sizes regardless of how enticing it may be in the heat of the moment.
Should you find yourself fortunate enough to enjoy a substantial win, consider withdrawing some of your winnings from your bankroll and treating yourself or a loved one, or put the money aside for a rainy day. Imagine turning your $1,000 bankroll into $10,000 overnight. Would you feel comfortable betting $300 at a time using a 3% unit size? Four losses would be $1,200, $200 more than your initial bankroll! By all means, add to your bankroll if you have a substantial win, but be smart about your betting and always remain in control.
Conclusion
Bankroll management is the cornerstone of successful sports betting. It encourages effective funds management, helps maintain emotional discipline, and ensures that bettors are not wagering amounts outside their means. In short, bankroll management puts bettors in a position where long-term success is far more likely to happen.
Sports betting is about playing the odds and taking on the bookmaker over the long term. It is not only about how much you win but how well you manage what you have. Good on you if you already practice bankroll management. If you don’t, having read this article, you should start as soon as possible. Good luck!
