What Is Bankroll Management?
No matter how good you are at betting you will never win on 100% of your bets, and for that reason it is crucial that you are good at handling your funds the best way. Handling your funds, the best way possible will not only keep you in the game, but also make sure that your betting will become as profitable as possible. This can be achieved through proper bankroll management, while improper bankroll management can be very costly. In this article we will go through the subject – what it is and why it is so important.
What Is Your Bankroll?
First of all, you might be wondering what exactly bankroll management is. To understand what it is, it is first important that you know what your bankroll is. Your bankroll is simply the amount of money that you have for your betting. When creating your bankroll, it is important that you do not put more money aside for betting than you can afford to lose.
When you have created your Bankroll and know exactly how much money you can place on different bets, you should start thinking about managing that bankroll. This is where Bankroll Management comes into play. To define it simply: Bankroll Management means making rules for yourself on how you most efficiently can allocate your funds. What rules you set and what your game plan is, depends on your goals and Bankroll Management is typically very personalized depending on these factors.
There are two primary aspects that any good Bankroll Management plan should consider: Tracking units and tracking bets.
Tracking Units: First of all, you should focus on units, which simply means the amount of cash you will place on each bet. Typically, a thumb of rule is that a unit shouldn’t be more than 1-3% of your total bankroll. The first time you hear this number it might not sound as much, but betting for much more than 3% on each specific bet can be really devastating to your bankroll if you end up in a bad losing streak. This is also why tracking units is so important; To protect you in the event of a bad run. And bad runs will happen – they do for any gambling person.
Tracking Bets: Other than tracking units, you should also track your bets. Keep a log over which types of games and bets you are picking, so that you can see on which bets you typically win, and which bets you have a larger tendency of losing. You can do this in an Excel spreadsheet. Doing this allows you to figure out what types of bets you win more of, so that you can begin utilizing these bets more often and use those you lose on less. When it comes to track bets, we recommend that you use betting.gs. Its extremely user-friendly and has a free version as well.
Why Is It So Important?
Now you know how to do Bankroll Management, so know we will explain why it is so very important. Being good at betting is more than just having a broad knowledge of the sport you are betting on. If requires money handling skills, and how you manage your bankroll can be the crucial factor on between how much money you win one day and how much you lose the next day.
Here’s a list of the main benefits of proper Bankroll Management:
It Ensures You Don’t Chase Losses
A proper plan make sure that you don’t end up chasing losses when going through a bad run. As earlier described, even the very best bettors also go through bad runs once in a while. When on a bad run, it is very tempting to keep betting to make up the losses with one big score. When we are losing money, we have a tendency of betting more money than we should and in the end throwing them all away because we want to win what we have lost. This never ends well. A good Bankroll Management strategy with fixed rules and guidelines makes sure that this won’t happen – as long as you actually are following the rules you have set.
It Prevents You From Going For That One Big Score
Another thing that can happen is that we get too eager. If you are on a great winning streak, and you really like the odds of the next game, you might be tempted to place a very large bet, as that win could significantly improve your profits. This can, however, be a really bad idea. You might end up losing all the profits you’ve made so far because you became overconfident and too tempted by that one specific big score. Good Bankroll Management prevents this from happening and makes sure you don’t throw all of your hard-earned winnings away just from being overconfident. It might be tough to follow in the beginning, but it is the long-term winning strategy.
It Makes You Survive A Bad Run
Sometimes we have bad runs, where things just aren’t going our way. Without Bankroll Management a bad run that lasts for too long can completely empty your bankroll and take you out of the game. With Bankroll Management, however, you are much more likely to go through this bad run without losing too much money, and are able to regroup, refocus, and get back on your game.
Bankroll Management Helps You Maximize Your Earnings
When it all comes down to it, the main reason you want to stick to a Bankroll Management plan is of course because it helps you maximize your earnings. Through carefully using units to define how much you should place on a bet and tracking those bets so you know on which bets you have a tendency of winning, you will be able to maximize your earnings, while there’s a good chance you will end up losing it all without Bankroll Management. The subject has also been covered in our popular article, 10 tips to follow for Successful Betting,
Hopefully this article gave you a clear idea about what exactly Bankroll Management is, why it is so super important for a bettor, and how you can implement in your betting life.