Three simple ways to bankroll management
Author’s bio: David Baghdasarov
Expert at Metaratings
. Betting market analyst.
Born in Yerevan into a family of physicists and mathematicians. Since childhood, I have followed almost all sports events. I’ve played basketball, volleyball, and table tennis. In early childhood, dreamed of becoming a traveler, and at a more mature age, a sports commentator.
For many years has worked in the field of betting and gambling in Russia. Quickly figured out the intricacies of administration and climbed the managerial career ladder.
In Moscow, opened and headed betting points for leading betting brands, managed a VIP gaming club and attracted new customers.
I believe that statistics, psychology and financial literacy are important in sports betting. Their absence can only be compensated by total luck, but I have never met such lucky ones in my ten years of experience in gambling.
Nonboring betting #2: Three simple bankroll management techniques
Hi all, my name is David Bagdasarov, and I will help you take your first steps in the world of online betting. For a long time, I worked as a manager of bet clubs of the largest companies, and I know how the flip side of the betting business works. As an in-house analyst at Telecomasia.net
, I help the users of our site to understand the diversity of betting operators, the rules of the game in them, special offers, and the system of legal betting operators. Today I will tell you how important it is to follow the rules when allocating the bankroll in betting.
What are bankroll and bankroll management?
As cliché as it may sound, some fundamentals are not easy to follow for beginners in sports betting. The bankroll is the amount of money you allocate for gambling at a betting operator. As a rule, the bankroll becomes the amount a customer keeps in his account all the time, but hypothetically, the bankroll can also be the amount allocated to play betting for a week, a month, a year. Thus, bankroll management is a part of game strategy, which includes financial aspects of player`s activity.
Let`s consider simple bankroll management as an example. You decide that you can make money on the 2nd leg games of the Champions League quarter finals. To do this, you have deposited 300 USD in your bookmaker`s account. Deciding to take a risk, you allocated 100 USD for each match of the game day.
Having bet on a draw in the Liverpool v Real Madrid match, you caught an enormous odds of 4.1 and received 310 USD in net profit. However, you nearly missed the match Borussia v Real Madrid and bet on an individual German total of more than one goal for 1,85. In the end, all we got was a return. By the end of the game day, you had 510 USD in your account (+70% of the bankroll). You solidified the profit, withdrawing 210 USD, and continued to play for 300 USD.
This is a simple example of proper bankroll management. Here we don`t take the other aspects of the strategy: the value of the odds and the estimation of the probability of the event occurring and intentionally simplifying the scheme by taking too large a percentage of the bankroll for betting. But we need all amounts only for illustration.
Simple rules for distributing the betting pot
Rule number one:
Don`t gamble with your last bit of money. It sounds obvious, but in the pursuit of quick profits, many people forget that bets are much different from market investment models. Yes, they can bring short-term gains, but it is pointless to bet without a solid financial reserve.
As a rule, the bookie is stronger, trickier, and more experienced. There are no quick ways to profit from betting, and professional bettors are just as hard workers as many others. They spend several hours a day analyzing the outcomes and odds to make a steady income.
Rule number two:
Bet as much as you wouldn`t feel sorry to lose. Another obvious tip, but I take my betting money very simply. When I deposit to an account at a betting company, I take the entire deposit out of my budget. In other words, by making a deposit, I`ve already lost. I am not sorry to part with that amount, and my only goal is to enjoy the game. If I win, I`ll be happy and use the money for something I can`t afford from my paycheck. If I lose, I`ll switch to a lot of other concerns and not think about it.
It`s like buying a ticket to the movies: before the film starts, I don`t know whether I`ll like it or not. And in the case of a bet, whether it will make watching the match more enjoyable and exciting. But life goes on after going to a bad movie, and going to the movies doesn`t lead to any financial hardship.
Rule number three:
If you play regularly, use flat bets. If you plan to play long-term, allocate a specific betting pot and play flat bets: a steady percentage of your original bankroll. The most balanced option is to use 3-5% of the bankroll for a single bet. To play flat bets is the right way because even if your predictions are at an average level, you minimize your chances of losing all of your money.
In conclusion, I would like to say that betting should not be treated as a way to earn money, but neglecting financial management altogether is wrong too. With regular betting, you can either not lose much or be in the black exclusively with a competent allocation of your resources. That`s why you should learn the basic strategies for betting on sports in the relevant section of our "Betting School".