Bankroll Management in Sportsbetting
Bookmakers are entirely responsible for setting odds. Thus, they have the benefit of building a profit margin on the bets that are placed by players. However, players can easily overcome the bookmaker’s advantage. Most experienced players know the sports they bet on too well, and they are aware of the betting strategies involved. One of the most critical strategies in the world of business is money management but in sports betting this is termed as bankroll management.
You need to learn about what is involved in bankroll management, learn about the benefits of having excellent bankroll management skills, and also the disadvantages that come with poor bankroll management skills. When placing bets in sports, one can follow the a few guidelines. One thing that you are required to do is set a budget for the amount of money you are willing to risk. This amount set aside is known as the bankroll.
The next step requires you to establish a set of rules that determine the amount of money set aside for a given bet. The final stage involves applying the rules that are in the previous step. Let us look at various ways you can use to manage your bankroll when placing bets on sports.
The use of units
In sports betting, a unit is the amount of money that you will be betting on a bet-to-bet basis. Units help one compare themselves to other sports bettors. For your benefit, the unit should be at one or two percent of your total bankroll.
Track your bets
Tracking can involve the use of a spreadsheet. In the spreadsheet you need to track the date, the team you are betting for and one that you are betting against, you also need to include the spread/total/line, the number of units won or lost and the number of units in play. On this spreadsheet, you can also track the weather. Doing all this will help you decide on the winning and losing points.
Various bankroll management strategies
a) Fixed unit model
Newbies in the sports betting world can use this. The method allows players to track wins easily or loses while at the same time, it is simple to use. This method requires you to wager only one unit on every regardless of the odds, your confidence, and your most recent win or loss streak.
b) Percentage model
This is where a percentage of your bankroll remains fixed.
c) Potential return model
This model takes odds into account. Here, the level of risk is considered.
d) Kelly Criterion method
The method analyzes the probability of a given team or player winning. It also looks into the odds values that are in connection with the probability of winning.
d) Confidence model
A variable model, and it depends on the level of confidence you have in placing a particular wager.
You must master these bankroll management strategies starting with the most basic method. After that, choose the model that is most comfortable for you and stick with it.