Proper money management is the absolute most important aspect of online sports betting.
To me, the worst sight to see is a sports bettor posting a winning record but showing a negative cash balance. This simply shouldn’t happen with proper money management and won’t after you read this page on money management. In this section, I will discuss the two money management strategies that I find most effective.
Let’s start this money management discussion by talking about determining a bankroll. Most people say to only set aside totally expendable income. I have asked myself who has that option? Even with all the success I have had, I have never had a certain amount of money that I just didn’t need.
I simply say that the money you use should be money that you could lose and still keep the lifestyle you are currently living. That means you would be able to pay rent, save for your children’s college, etc. Try to think of this as a risky investment where you can only lose the amount that you put in.
Here are two money management strategies addressing how much you should wager on each game.
Money management strategy #1
- Setting your Expectations and Winning Percentage
The first step in this money management strategy is to set a realistic expectation of the number of wagers you are going to make in a given season, i.e. NFL, MLB, or NCAA Football. Try to separate the season into weeks and find out how many bets you will make. Multiply this by the number of weeks in the season.
You should know that the more wagers you make, the higher the volatility your betting account will have. This means that you are adding more risk with more bets, but that with the higher risk, you have higher potential returns.
The second step in this money management strategy is to determine the winning percentage that you think you will achieve throughout the year. If you have been keeping records of bets over the past few years, this is where they come in handy. If not, it is OK.
The next step in this money management strategy is a fairly complex set of formulae and I won’t burden you with it here. If you are interested in this money management formula, click the link above the banner at the bottom of the page.
Money management #2
- The Drop-Off Theory
The next money management system is one that a friend of mine uses. He has been very successful with it, so I thought I would share it with you. It is called the drop-off system. The idea of this money management system as with any form of sports betting is to minimize your losses. Discipline, as we know, is the key to winning.
The drop-off theory encourages the bettor to increase his bets when he is hot and bet low when he is cold. We all go through streaks. The profitable bettors capitalize on the good ones and minimize the bad ones.