Most of us focus on betting systems and strategies that will be profitable. After all, without a sound betting system, we won’t make any money, right? The same thing can be said about “money management.” You need to become a sp if you don’t manage money. Sound financial management skills can significantly reduce the risk of experiencing significant losses. It will also help turn this “hobby” into a legitimate “investment.” With platforms like 20Bet, focusing on intelligent betting strategies and robust money management becomes even more accessible, ensuring that enthusiasts can elevate their hobby to a level of serious sports investment with greater ease and efficiency.
Many professionals use the phrases “risk management” and “money management” interchangeably in finance. What are we trying to do when focusing on “money management?” Simply put, we’re attempting to “manage our money” – or “manage our risk.” Our goal is to preserve our capital or hard-earned money. We want to minimize the chances for loss – or, in a larger sense, cut our “risk of ruin.”
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Flat Betting
Stick to flat betting—bet the same amount every time. Chasing losses by upping your bets doesn’t work and can quickly drain your bankroll. Despite the allure of systems like Martingale, they’re risky and can lead to significant losses. Using a systematic risk management approach is key in sports betting. It’s about keeping your strategy steady and your risks low, especially on betting sites. Remember, a consistent approach helps maintain a sustainable strategy and protects your investment.
Unit Size
Next, consider the type of investor that you are. Are you aggressive or conservative? Are you experienced or a novice? The answers to these questions can determine the size of your typical bet or your “unit” size.
We recommend that a sports investor bet 1% – 3% of their bankroll on each bet. Conservative sports investors (or beginners) should bet 1%-2% on a play. Note that professionals are in the 1% range.
Aggressive sports investors might want to bet 3% on a play. A 2% bankroll is good. It helps you withstand losing streaks while growing your sports investments. Very aggressive investors might bet 4% or 5% of their bankroll on a bet, but this is too risky for most investors.
Why not 4% or 5%? The short answer is Streaks and the risk of ruin. If you bet too large amounts, a bad streak could cut your bankroll in half (or worse). You might feel like you need to reduce your bet size – before the inevitable hot streak. It’s prudent to bet small amounts, as it helps you stick to your strategy and maintain discipline.
True Bankroll and Risk Capital
Whenever we talk about percentages of bankroll, most casual bettors feel that they are on the “high end” of the ranges we discuss. This is true. The “rue bankroll” for most casual bettors is higher than what they have in their accounts. Some bettors may have a balance of $X in their accounts, but they may consider adding another $Y to their accounts in case of any potential drawdowns. Professionals already know their “full bankroll.” They must preserve their “capital” versus the “risk of ruin.” Investors – and in this case, sports investors – need to understand the level of their “true bankroll” or “risk capital (allocated to sports).” Once investors look seriously at their finances, they might better understand the “rue” level or the amount they divide into sports investing. It may be wise for them to consider betting 1%-2% of their risk capital or actual bankroll.
Money Management and Playing Defense
We have written an article that focuses on managing money. Most bettors need to pay more attention to it. Good money management is similar to playing good defense. Money management will help you “stay in the game” during tough times. This way, your good handicapping strategies (your offense) can put you ahead.