The Five Keys To Proper Bankroll Management

You need to be able to pick winners in order to make money betting on sports. Everybody knows that. However, the majority of casual bettors don't realize the other factors that go in to successful sports betting. Even the best handicappers in the world can struggle to make profits betting on sports at times. In order to maintain a consistent revenue stream, you need to know how to handle money. Bankroll management is one of the most important aspects of making money betting on sports. Here is a look at five keys to proper bankroll management.

Understand The Importance Of Money

You can't bet on sports without money. It is the most important tool you have when it comes to wagering on sports. However, most casual bettors don't see it that way as they're often very careless with it. That means they don't understand the importance of money management. While it makes sense to take risks in certain situations, you need to be careful not to go too hard in any one situation when you could end up losing far more money than you can afford. Making a profit can often come down to risk management so always consider whether it's better to push forward or take a small step back in order to regroup and live another day.

Understanding Risk As A Sports Betting Term

One of the most important things that sports bettors need to do is understand "risk" as a sports betting term. A key reason why inexperienced bettors fail is that they don't take the time to understand risk management. A bettor with a bankroll of $10,000 can afford to wager more than somebody with a $300 bettor. The money is relative. Consider your bankroll as a percentage. In order to limit exposure, pick a set amount that you want to risk on every wager and try to stick with it. For example, if you want to bet 10-percent on every wager, then you would risk $10 on each bet if your bank roll was $100. If your bankroll was $1,000, then you would wager $100 on each bet. By limiting your risk, you protect yourself from being overexposed and afford yourself a longer lifeline when it comes to betting on sports.

Keeping Records

Another rookie mistake that inexperienced bettors make is that they don't keep track of their wagers. Establishing a record is key to making a profit. You need to be able to track your wins and losses to understand where you are succeeding and where you are losing. By keeping track, you can take the necessary measures to limit your losses and focus on the strategy that you use to win. It isn't too late to start now if you haven't started keeping track of your wins to this point.

Understanding Risk/Reward Betting Favorites

It's important to understand the differences in returns between betting favorites and betting underdogs. You could bet a small amount of money for a larger payout if you are betting on an underdog. However, if you are betting on a favorite then you might need to risk more money in order to get the same potential payout. This could lead to problems if you risk more than you probably should betting on favorites. There is a fine line you need to walk when it comes to betting on favorites and underdogs. Just make sure that regardless of the scenario you cover all your bases and don't leave yourself overexposed.

Recreational Versus Professional Betting

There are differences between recreational betting and professional betting. If you are betting small amounts of money to add excitement to games then you don't have to worry nearly as much about managing your money. However, if your goal is to make a profit then money management should be your biggest concern. There is a key balance between establishing a small amount of money for recreational betting and risking larger amounts of money in order to make money for a living. Figure out what your goal is. If you are in this to make large amounts of money, then make sure you take the necessary steps to protect and eventually build your bankroll.