Creating a money management plan
Money management is key to betting, but more so online. If you do not manage your money well, everything else is irrelevant. It only takes two clicks to lose as much money as you desire, which is far more dangerous than high street betting.
Let’s face it: you’re not going to waste your time going back and forth between the bookies, or running back as soon as you lose a bet. But when you’re betting online, the bookmaker is always open, so discipline is crucial.
How important money management is with online betting
Money management is probably more important than the bet selection in a way so consider: you could have a 70% win rate and an ROI that is -%. How does that work? For every bet you win, you might think it’s a good idea to double up and double up or place increasingly bigger stakes until you un-do a work of good week in one rash evening or afternoon.
Let’s remember you need to win a good 53% of bets to produce a long term ROI of 5% (which is pretty respectable as bets pile up) and you also want to be doing that at odds of even money and above, or else you’re pushing your required win rate up further and further, which doesn’t make for as productive of a return on investment.
A big problem is the excitement factor when it comes to betting. If you find that you don’t receive much of a thrill, and you find betting quite boring, placing the same stakes on the same volume of bets, with the same outlay for the same old returns that are just about adequate. Then goes what? Well done you. The more boring your betting (or a business) is, the more chance you’re probably doing it right.
If you’re betting purely because you enjoy the thrill of betting amounts of money on televised games for excitement? Then fair play. Hit 50% of your bets if you can, and you won’t be too out of pocket and you’ll get plenty of entertainment along the way. But if that’s your goal; this article isn’t for you.
What’s the best way to manage your money?
A staking plan can be a good start to ensuring that even if you do have an occasional moment of madness where you stray from the plan, give in to the excitement of a televised bet or even just make a judgement error on an in-play game, you’re not going to screw yourself over bad enough that you leave yourself broke, because you’ve only lost ‘1 unit’. The term unit refers the amount that you are betting. A single unit can be any amount of money you want it to be, but it will be a set amount of money in relation to your ‘betting bank’ or the total amount of your betting account.
For example you have a betting bank of £2,000, so a £200 bet would be rather large. It’s nothing to lose 10 out of 15 bets during a bad week, and already you may half your fund. £20, or 1%, may be more suitable. So you’ll decide that each of your bets will be 1 unit (£20 flat stake), from your £100 unit account. Even if you double your bank to £4,000, your bet may remain a 1 unit (£20) bet.
You may choose to increase your unit stake as your betting fund/bank grows big enough over time, but it’s good money management and quite a wise way to ensure you’re never out of pocket to stick to a 1 unit flat stake.
To expand on that, we have created a guide looking at some betting systems, starting with the most sensible one out there which also ties in with the method of staking units. Really, it’s more of a money management and long term betting strategy than a quick money making ‘system’.