Money Management is the foundation of success in Sports Investing, note I say investing not gambling. My goal here is to to differentiate gambling from investing. Let me start by giving you the definition of the two words. Gamble: “To bet on an uncertain outcome, as of a contest. To take a risk in the hope of gaining an advantage or a benefit.” Invest: “To commit money or capital in order to gain a financial return.” Do you understand the subtle difference? Gambling is a recreational activity or even worse a destructive addiction which solely relies on luck and often superstition. Investing is a serious activity which requires knowledge, discipline and a gameplan. This is what I hope to teach you in this post. Now there are MANY different money management strategies that you can find on the internet, some are a good, some are bad, but ultimately there is no right or wrong strategy. It comes down to what fits your preferences and or circumstances, such is life. In this post I will be teaching you the way I choose to manage my money, I tend to opt for an aggressive strategy which may or may not work for you. I will post some tips and tricks for beginners along the way. Without further ado… I use a unit scale of (1-5x) which (1x) being 1% of total bankroll and (5x) being 5% of my total bankroll. Here’s the magic part, I use compound interest(https://en.wikipedia.org/wiki/Compound_interest) For simplicity lets say your starting bankroll is $1000 a (1x) play would be $10 and a (5x) play would be $50. If you go 2-0 on these plays @ odds of $1.90 you’ll have profited 5.4 units(5.4x) and your bankroll will now be $1054. Next time you place a (1x) bet 1% of your bankroll is now $10.54 and a (5x) play(5%) is now $52.7. Do you see where this is going? Your bet size will increase exponentially as your bankroll grows! The beauty of this is, it works the other way too. If you lose money your bet size will decrease exponentially limiting the damage done to your bankroll, and ultimately saving you from going bust. The magical number 52.4% This number, 52.4% represents the percentage of bets you must hit @ odds of $1.90 to break even in sports investing. This means anything above 52.4% is PROFIT! In conjuction with the compound interest strategy this is where the fun begins! We’re hitting at a 58.3% clip over at @simplerugbybets with an all time record of 223-166. I’ll let you do the math! For Beginners If you’re new to this I recommend flat betting(fixed amount of money) every bet until you get your head around all of this, and grow your bankroll a bit. So lets say you’re new and you have a bankroll of $500 or less, I’d recommend betting $20 per play until you build that roll upto $1000 or a point where you feel comfortable enough to start using the compound interest strategy. |
Established in 1995,
Hot Forum Topics
