“Yeah, mate. I’m up with the bookmakers. Definitely a profitable punter.”
“Nice one, how do you manage your bankroll?”
If they can’t provide you with a decent answer, they aren’t profitable.
If they respond with “what’s that?” or anything similar, they aren’t profitable.
It’s the most boring and uninspiring part of sports betting, but Bankroll Management is the key to success.
Even if a person starts hot and gets “up” throughout their first weeks of sports betting, not having a bankroll management plan will see those early profits go back to the bookie quicker than than he or she can reach for their wallet and click ‘deposit’.
But what is bankroll management?
It starts with your bankroll.
For those taking their sports betting seriously, you’ll need to iron out an initial investment. Obviously, this is an amount you can afford to lose.
Perhaps it’s $1,000 for 100 units, so $10 per unit.
Betting one unit at $10 with another $990 in the balance may feel strange to begin with, but slow and steady wins the race in sports betting.
For beginners, flat betting is the way to go. Even some of the most experienced bettors out there don’t sway too far from it.
It involves having a consistent unit size – so that $10 – and using that as the stake amount every time no matter the bet.
Some you might be more confident in than others, but the unit size remains the same.
How you determine that unit size is up to you, but it should really only be 1%-3% of your bankroll. If you’re consistent in your management and that bankroll increases, there’s room to change your unit size.
Say that initial $1,000 is now $1,500. Upping the unit size to $15 allows you to increase the size of your bets while giving you the flexibility to revert back the the $10 unit size should you hit a losing streak.
It requires discipline and consistency. Flat betting is often a technique many preach but fail to practice for the long-haul. However, if you’re consistent in your unit size and hit over 52.3% of your bets at the line (assuming $1.90 odds), the consistency then comes in the form of profit.
Benefits of Flat Betting
- Limiting your losses. Losing streaks happen – avoid chasing loses with increased unit sizes.
- Holding your profits. Everybody goes on a hot streak – don’t be tempted to blow it by chasing more with increased unit sizes.
- Accountability. When you see the bankroll going down, you can see something isn’t right. Make the adjustments to your unit size and how you bet.
- Flexibility. It’s easy to see when you’re doing well. Bump up the unit size if the bankroll allows it – just be careful.
Cons of Flat Betting
A con of flat betting is it can reduce potential profits while failing to capitalize on significant edges you’ve identified in the market.
However, if you’ve made it this far down the page, it’s not something to worry about just yet. Calculating edges and adjusting stake sizes is on the next level of sports betting. In the meantime, build the discipline required no matter the level you’re building toward.
It’s equally important right across the sports betting world.