If you’re very serious about practicing betting, a “bank” must be defined before betting can begin. The betting bank is the amount of money you have set aside for betting, and how big that amount is, is up to you.
There’s only one condition that a betting bank must meet, and that’s:
The Bank Should Never Be Greater Than the Amount of Money You’re Ready to Lose
Never, but ABSOLUTELY NEVER, take money on loan for betting or take the money you put aside for something else to set up a betting bank or just to play a betting slip. Betting is an activity that hasn’t made anyone rich overnight, so neither will make you. The moment you start betting with money that’s not intended for betting, you’re automatically headed to A SURE DOOM. The very fact that you need that money for something else places you in a subordinate position. Betting bank and ways to manage it, i.e. money management, was designed as such for a reason – to make it easier for you to keep track of and free you from the potential problem of losing money that you shouldn’t lose and similar ones that obscure your logic in the first place.
Either way, it’s hard enough to choose a good pair on a betting slip, not to mention the case when you’re burdened with compulsion. Let’s be honest, this situation has happened to all of you at least once in your life. That’s for sure. Precisely because of all this, the AXIOM AND THE FIRST LAW OF BETTING are once again: “The Bank Should Never Be Greater Than the Amount of Money You’re Ready to Lose”.
4 Basic Things That Are Related to Every Money Management
We had to repeat this one more time because the importance of that is simply impossible to stress too much. Betting should be something that gives you pleasure and an additional source of income, not a burden. Here we must mention once again that betting is first and foremost something that can only work in the long run. If you don’t have patience and self-control then this article is not for you, so feel free to skip it. So, let’s say you set aside money, set up a betting bank, and are now eager to move into the ‘real world’.
The 4 basic things that are related to each money management are:
1. Stake – This is better defined as a percentage of the bank.
2. Profit – as its name suggests, it’s the amount of money received for the hit bet minus the stake for that bet (i.e. profit = to win-stake).
3. Return of investment – this is better known as yield (yield = total profit/total stake*100).
4. Number of bets over a certain period of time – this is better known as betting rate.
What Exactly Are the Mentioned 4 Items of Money Management?
Of course, you’re interested in profit in the first place. Your goal is to make your profit as high as possible, and the ideal money management is the one that will allow you, provided you’re successful, to use the profit for new bets so as to burden the initial bank as little as possible.
In second place comes yield. It serves as an indicator of your success. It shows you whether you’re successful and how successful you are in choosing pairs, that is – if you aren’t sure whether your estimates are good or not, after a certain time per yield you can conclude that. It also tells you if you can find pairs that are valued and what that value is (this is also called edge).
For example, if you play 20 singles of 10 units each (no matter what the odds are and how many you’ve hit) and if your total return of money is 220 units, it means that your profit is (220-)20*10)) = 20 units, and then your yield is (20/200)*100 = 10%. In other words, on the 20 singles played, you achieved a yield of 10%, which means that you managed to get an edge of 10% on those 20 singles, i.e. that your AVERAGE assessment is 10% better than the bookie’s estimate. Otherwise, if your total return of money is say 180 units, then profit is (180-(20*10)) = -20, and yield is (-20/200)*100 = -10 %. If this is the case, then you need to ‘examine’ the way you choose pairs on a betting slip because it’s obvious that you aren’t succeeding in ‘beating’ the bookie, i.e. that your estimate is 10% lower than the bookie’s.
Of course, this is just an example. In order to come up with an approximately realistic estimate, you need to keep track of everything you’ve played over a long period of time.
Focus on Yield
From all the above, it can be concluded that your yield is the BASIC INDICATOR when choosing a betting system. At any time, by checking the yield, you can see if your chosen system is successful and how much. Yield also tells you how much profit you can expect over time when using a particular system. Yield can also be used by the bettor as a tool to set goals in betting.
So, for example, if you want to double the bank on an annual basis, you can get the following data by analyzing the yield and previous bets:
• How big is your edge compared to bookie’s.
• How much do you need to bet with such an edge (betting rate) on an annual basis.
• How much bank do you have to invest to achieve the goal.
Once you set a goal and choose the betting system that suits you best, all you have to do is stick to it and watch your bank grow. Of course, nothing is 100% certain, so it’s necessary to constantly monitor the yield and, if you notice that it starts to deviate from what your average is, it means that it’s time to change the betting system.