Mastering Your Finances: Effective Bankroll Management Tactics
If you’ve got a good sportsbook/online casino and a decent betting strategy, you’re pretty solid enough to make it in the betting world already! However, if you want your success to be sustained and ensure you don’t fall into gambling problems, there’s one more thing you need – good bankroll management! Learning bankroll management for long-term betting success isn’t a luxury. Instead, it’s a necessity. Below, we’ll cover the best and most efficient bankroll management techniques and strategies!
Bankroll Management – What It Is
Before jumping into the best tips and tricks for bankroll management, it’s essential to understand the concept. At its core, bankroll management is the art of tightly controlling everything you stake every time. It’s a system to ensure that punters never bet more than they can comfortably afford to lose.
Why Bankroll Management Is Critical In Betting
While you can certainly carry on betting without implementing bankroll management, you’re most assuredly better served to incorporate this element into your gambling sessions. This is because this practice helps:
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Prevent compulsive gambling;
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Give punters more control over their betting sessions;
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Make it easier for you to stay motivated;
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Reduce the effect of variance;
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Open the floor for better decision-making;
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Make tracking your bets easier;
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Ensure long-term profitability;
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Helps bettors stay in the game longer.
The Best Bankroll Management Techniques And Strategies
A few of the most effective tactics you can employ to preserve your bankroll include:
1. The Kelly Criterion Bankroll Management Technique
Developed by John Kelly in the mid-1950s, the Kelly Criterion is one of the best ways of safeguarding your bankroll without limiting your winning potential. You get the portion of your bankroll to bet using this technique with the formula:
Overlay/Odds – 1
With this technique, there’s considerably less chance of over or under-betting. The only issue with using this bankroll management strategy is that it demands that you accurately estimate the probability of an outcome – something that can be pretty challenging to do.
2. The Fibonacci Bankroll Management Technique
Derived from the world-famous Fibonacci sequence, this is a progressive way of protecting your bankroll. The rule of play here is simple: you increase the size of your wager by one unit after every loss and reduce it by the same value after every win.
3. The Fixed-Percentage Bankroll Management Technique
Sometimes referred to as flat betting, you must select the percentage of your bankroll you’re willing to stake before your betting session starts. For example, you could bet 3% of your bankroll. This means that if you stake 3% of your bankroll and win, your stake size will increase slightly for the next wager. In the same vein, losing that bet would reduce the next go around a little. This way, you are protected from heavy losses while remaining perfectly positioned to capitalize on winning chances.
Becoming a Better Bettor
Proper bankroll management is one element that punters seldom account for. Yet, its importance can’t be overemphasized. Now that you know the essentials of this principle, you can get on the road to becoming an even more accomplished bettor!
