One of the most common questions that I get is:
"What is the proper money management strategy to use if I am serious about betting on sports"?
I like to keep things very simple when it comes to money management strategies to maximize gains, and at the same time minimize losses.
The first lesson that I will discuss in this article that you must understand is:
You must be properly capitalized.
(To have any chance of long term success.)
In gambling circles this is often described as your "bankroll", and more importantly, your available funds or bankroll MUST agree with what you are trying to accomplish in regard to profits.
Let me use an example to explain this.
At the start of the football season a player has $5,000 in his bankroll spread out over 5 different sportsbooks. Let's also assume that based on this player's time commitment and resources he expects to play about 8 games a week. Finally, after years of documentation, this players results on average are roughly 55% winners against -110 point spreads. (BTW...a player with a lifetime 55% winning percentage betting NFL and college football should be a very proud and have a nice stack of cash to show for it.)
Now, using the months of September through December, and playing approximately 8 football games a week, this bettor would wager on 128 games. With his 55% expected winning percentage his record would be 70 wins and 58 losses. There are different schools of thought, but for discussion I will use a 2% of bankroll betting structure for each bet. Calculating this out would show an approximate profit of $620 for that 4 month period.
This also would equate to a return on invest of around 12.5% on the 5000 bankroll.
From an investment standpoint a 12%+ return on your investment in 4 months looks pretty damn good. However from a bettor's standpoint, the comment often is..."I want to make more money betting football.."
You primary option to accomplish this is pretty straightforward:
You need a larger bankroll.
It takes money to make money, you must keep your expectations realistic, and understand that sports betting is not a get rich quick scheme.
In any other investment, (real estate, stocks, small business, etc.) making 12% on your money in 4 months would be considered a success. Treat sports betting the same if you are serious about making money long term in this "racket"!
Sports Betting Lesson #1: Do Not Be Undercapitalized!
Around the corner will be coming lesson #2...