Bankroll management is a crucial part of making money with sports betting. Done correctly, it ensures you'll make slow and steady profits, while avoiding big losses. In this article, we discuss how bankroll management consists of both setting and preserving your bankroll. We'll also look at the importance of bankroll management, and how you can get started with it today.
What Is Your Bankroll in Sports Betting?
In sports betting, your bankroll is the total amount of money you have available for betting purposes. On the other hand, a stake is the total amount of money you place on a single bet. For example, if you have a total of £500 for betting purposes and place a £30 bet, your bankroll would be £500, while the stake for that bet would be £30.
What Is Bankroll Management?
Bankroll management, also known as money management, involves building your betting strategy around a set bankroll, and taking measures to preserve that bankroll. As you can see, there are two parts to bankroll management, and both of them are equally important if you want to make money from sports betting.
Why Does Bankroll Management Matter?
Successful sports betting isn't just about being right. Instead, it's about being right often enough to turn a profit in the long-term. That's right: even the most successful betters aren't right all of the time. This is one of the reasons why bankroll management is so important, but there are more. Let's look at some of the main reasons to watch your bankroll.
To start with, it's essential to set a fixed bankroll, so that you can limit your risk from any betting ventures. Betting can be a very emotional activity depending on whether it is going well or poorly, and having a fixed bankroll prevents you from making bets that are too aggressive or continuing to bet with a strategy that isn't working. If you stick to a fixed bankroll, you know that you'll only ever lose that much if everything goes wrong. If you don't stick to a fixed bankroll, emotional, irrational thinking can lead to endless losses.
What's more, having a fixed bankroll will provide a reference point for each individual bet you make. Most betters (even casual punters) know that there's no logic in putting all of your money on one bet, since you'll lose everything in the event it's wrong. Instead, you should place small bets that can afford to go wrong. Of course, you'll only know what a "small" bet is if you've decided what your total betting pot — your bankroll — is going to be.
Basic Instructions for Bankroll Management
Now that you know what bankroll management is and why it matters, here are some basic instructions for getting started yourself.
Choosing Your Bankroll
The first step in bankroll management, as discussed above, is choosing your bankroll. Of course, this depends on the individual and their risk tolerances. Ask yourself: how much money can I set aside for gambling activities? Although proper bankroll management should prevent you from losing your entire bankroll, you should only use money you don't need for your bankroll.
Preserving Your Bankroll
The second half of bankroll management — and arguably the more complicated half — is actually preserving your bankroll. The first step in doing so is placing bets that are small comparable to the size of your bankroll. There are many approaches to doing so, but one rule of thumb is that you should place a maximum of 1-5% of your total bankroll on any single bet.
Continuing our earlier example, if you've set aside a total of £500 as your betting bankroll, this rule would suggest that you should only place bets for between £5 and £25. As a result, even if these bets are incorrect, they'll have little impact on the size of your account. This means you'll be able to continue placing bets, and hopefully still turn a profit.
The second step in preserving your bankroll is resizing bets depending on their likelihood. Above, we saw how all of your bets should only reflect a small portion of your bankroll, so as to minimize risk. However, even then, some of your bets may be larger than others. If bets are very likely — and have low odds — you may wish to opt for larger stakes (within reason). On the other hand, if bets are very unlikely — and have high odds — you may wish to opt for smaller stakes.
This second step is incredibly important. After all, bankroll management is all about managing the risk of each individual bet. By resizing your bets depending on their likelihood, you ensure that both likely and unlikely bets carry similar amounts of risk to your bankroll. Remember that, in betting, risk comes hand-in-hand with reward, so all of your bets should bring similar levels of profit after being resized.
The Hinto Solution
Hinto is an advanced, data-based sports betting algorithm that generates top-of-the-line tips for football and tennis matches. A major selling-point of the Hinto platform is that it takes care of bankroll management for you! All tips provided by the algorithm are based on a £2,000 bankroll. Not only does the algorithm take into account the size of your bankroll, but it also takes into account the likelihood of each individual tip. As a result, making money with Hinto is as simple as placing bets with the exact stakes provided.
Bankroll management is a crucial aspect of making money with sports betting. It's all about choosing, sticking to, and preserving a pot of money for your betting activities — known as your bankroll. As we've seen, there are two parts to bankroll management: choosing a bankroll for your betting activities, and preserving it by managing the size of each individual bet. Bets should be placed with stakes that correspond not only to your bankroll, but also to the likelihood (and odds) of each specific bet.