“The way you determine the amount you are going to bet is just as important to your likelihood of being successful as your process for determining your selections.”
An often overlooked reality in relation to betting is the fact that the way you determine the amount you are going to bet is just as important to your likelihood of being successful as your process for determining your selections.
Indeed, there are plenty of good judges out there with a methodological approach to form analysis who have the potential to make money but end up on the wrong side of the ledger due to poor betting habits and ill-considered staking.
Just like in many businesses, their failure is down to cash-flow problems and poor bank management rather than any inherent flaws with their skill set in finding the right horses to back.
If you are serious about trying to earn money from your betting then it is absolutely paramount that you establish a bank.
Start with an amount you are comfortable with (be it $1,000, $5,000, $100,000 or more) but this money needs to be set aside purely for the purposes of betting and nothing else.
Secondly, keep a record of your bets and consistently track your performance.
"Manage your betting like a business, not a hobby. This helps instil discipline and assists with rational decision-making processes."
Manage your betting like a business, not a hobby.
This helps instil discipline and assists with rational decision-making processes.
Good bankroll management comes from having a definitive, calculated staking plan.
Many novice punters fall into the trap of level staking their bets – that is, betting the same amount irrespective of the price of their selections.
This is a short-cut to failure, as it doesn’t give any credence to the probability of each bet being successful.
We’ve spoken previously about converting probabilities into odds.
For instance, odds of 3.00 imply a 33% of winning, odds of 10.00 imply a 10% chance of winning and so on.
The problem with this approach is that your returns on the higher-probability bets (the 3.00 chances) won’t be enough to cover the losses on the lower-probability bets (the 10.00 chances) and your bank will diminish pretty quickly.
Instead, appropriate staking requires betting variable amounts dependent on the probability of each bet being successful.
Bet To Collect
Your bet sizes need to be proportional to the odds of each runner and reflect a percentage of your total bankroll dependant.
This is commonly known as a ‘bet to collect’ approach, whereby you aim to win a certain amount relative to your bank.
As an example, if your bank is $10,000 you might bet to collect 4 percent ($400) of your total bank on one bet (a 3 to 5 percent target is generally applied by a lot of successful professionals).
If you are betting on a 2.00 chance (50 percent probability) this would require you to bet $400.
If you are betting on a 5.00 chance (20 percent probability) this would require you to bet $100.
If you are betting on an 11.00 chance (10 percent probability) this would require you to bet $40.
It’s a much more reliable method that maximises the growth of your bankroll without placing undue risk upon it.
Discipline With Bet Placement
Aligned with this is the need to be disciplined with the placement of bets.
You might be particularly keen on a horse but if the odds you are receiving don’t reflect any edge then you have to be prepared to let it go (and not lament the fact that it goes on to win).
With the sheer volume of races on these days there will be other opportunities to build your bank and control of emotions is one of numerous factors that sets apart profitable punters from the rest.
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