Sports betting is a game of chance and is therefore always associated with risks and uncertainties. But that doesn’t mean that you can’t be strategic when betting on sports. It doesn’t matter whether you choose a betting platform or go to a traditional betting office.
Sure, you can just bet randomly without analyzing sporting events and betting markets, but this approach will not bring you any betting success in the long run. In addition, this approach can lead to gambling addiction. Yes, betting on sports can also take on pathological forms. In this article, we provide you with an explanation of bankroll management for sports betting and explain the most important terms that are relevant to understanding bankroll management.
Money management basics for tipsters
Two important principles of money management are bankroll (capital) and the amount of each bet. Bankroll is the amount of money you use for sports betting. It is usually a monthly bankroll, but you can also set a weekly bankroll. It depends on how often you bet on sports. The idea is that you set yourself money limits and always stick to them. This way you protect yourself against losses: for example, if you have set yourself a betting budget of 500 euros, then you cannot exceed this amount and avoid possible financial problems that can arise from unplanned expenses. If you place bets based on gut feeling, you are more likely to lose control of your own expenses and place too much money on one tip at once.
In addition to the betting budget, which should be chosen wisely, you now have to determine how high the individual bets should be. They can all be the same (flat) or different (dynamic). The flat bet method states that all bets should always remain the same. The bet should be calculated as a certain percentage of the bankroll, for example 2% or 5%. The share always remains the same, and so does the bankroll (100%). Even if you have lost or won something within a month, this share is always calculated based on the original fixed betting budget.
Dynamic bets are therefore not the same because the bets themselves are not the same. Each bet has its own betting odds and other parameters. And according to one method for calculating dynamic bets, you do not use a fixed bankroll for 100%, but the actual bankroll that you have in your betting account. The unit method states that you should assess a bet based on its security. If the bet is safe, then it gets a security factor of 10. And a “security unit” should correspond to a 1% share of the bankroll. There are also systems for calculating bets that are based on certain mathematical formulas, such as the Kelly system and the Fibonacci system.
Which strategy is the best?
There is no money management approach that ensures success for all bettors and can always be used. Which strategy is right for a bettor depends on their long- and short-term goals, preferences, gaming habits, betting experience and risk tolerance. Money management with flat stakes has a low risk class: you play it safe, always spend a certain amount on a bet and actually take no risk at all.
In the worst case, you use up your entire bankroll, but that shouldn’t be a problem. Simple flat stakes are better suited for beginners, and for experienced bettors, it is recommended to use more complicated methods. However, all money management strategies have in common that you never have to exceed your bankroll. And regardless of which strategy you stick to, you can always get more out of sports betting with bankroll management.