This article is a must-read if you want to enhance your sports betting experience. In part five of this series, I will share with you how to stop chasing losses as I offer you the opportunity to multiply your profit.
Let’s talk about a concept that can save you more money and make you more money than any of the other handicapping principles I can teach you.
It’s a money management system that multiplies profit, reduces risk, and if followed, helps in taking expectation and the resulting emotion out of the equation.
This system is designed to automatically prevent you from chasing losses, while offering you the opportunity to multiply profits.
1. Determine your original bankroll. This is the amount that will not change your lifestyle if you lose all of it. In other words, do not bet the mortgage, car payment, your kid’s tuition, or other money for life needs. It does not matter how small this amount is. It will grow larger!
2. Wager between 3% and 4% of your bankroll on each play.
3. Wager no more than 10 plays per day
4. Expose no more than 25% of your bankroll per day
5. What you save is what you earn. Understand the value of half a point. Shop multiple “outs” to obtain best value. Play only with “outs” who offer 5% juice. Play only with “outs” who will pay you.
6. Do not stray from these premises. They are essential!
Putting Our Money Management System to Work
1. At the conclusion of each day, add your winnings, subtract your losses from the starting bankroll of that day.
2. This becomes your starting bankroll for the next day.
3. Continue this strategy (wagering 2% to 4 % of your original bankroll on up to 10 plays per day) until you have either: won 50% of your original bankroll or lost 50% of your original bankroll. For example, if you began with an original bankroll of $10,000 you would wager $200.00 to $400.00 per play, never exposing more than $2,500.00 each day. You would add or subtract your daily results until your bankroll was either $15,000.00 or $5,000.00.
4. At this point your new bankroll would be either $15,000.00 or $5,000.00.
If it is $5,000.00 your plays would then range from $100.00 to $200.00. By reducing your plays, you have cut short a losing streak or bad season, and prevented yourself from throwing good money after bad.
You may resume your original bet size of $200.00 to $400.00 if your bankroll increases 50% to $7,500.00.
Should it continue to fall to $2,500.00, you must again reduce your wager size to $50.00 to $100.00 and consider a new avocation!
But let’s assume you are met with good fortune. Regardless of how long it takes, your bankroll grows to $15,000.00. Congratulations, you may now step to the next window and increase your wager size to $300.00 (2% of $15,000.00) to $600.00 (4% of $15,000.00).
You have no put the multiplier effect to work *wagering 50% more) because you have proven you are a winner!
Two Options in This Winning Scenario
1. Your fortunes take a turn for the worse and your bankroll falls to the original $10,000.00. Do not chase by falling prey to the motions resulting from your egoid expectations that you want back $5,000.00. Rather, return to your original bankroll and bet sizes of $200.00 to $400.00 per game. Have patience and stay in your present moment.
2. The second Scenario is more positive. Your bankroll continues to grow due to your savvy handicapping judgments. But before you become too cocky, remember that it is easy to play out this positive scenario. For each time your bankroll increases 50%, step up your wagering size a corresponding 50%. Soon you will be sipping margaritas in the islands. Oh, were it only that easy! But it’s not! Random variance will eventually exert a negative influence. You know it as a losing streak! Your results are filled with "bad beats" that could "only happen to you!" Your mind fills with expectations of former glory (and money) while your emotions swirl amid a loss of confidence, anxiety from your bad bets, and fear that your future results will be negative.
1. The first you have already learned. It is difficult to positively function emotionally if you have expectations. You must return to your present moment strategy, functioning in the now; and
2. The triple stack method of money management system.
This theory states that after seeing your bankroll at least double in size, you should lose one third of your pforits from the high point of that bankroll, declare yourself a profit by drawing down the difference between your current bankroll size and the original bankroll.
In our example, you handicap well enough to run your original bankroll of $10,000.00 to $30,000.00 only to lose back $10,000.00. You still have $20,000.00 in your bankroll. Declare yourself a profit of $10,000.00 (the current bankroll minus the original $10,000.00). Now you can go on that trip to the islands, You deserve it
One final note, many successful professional sports gamblers use a separate bankroll for each sport. It’s a good idea if your level of handicapping varies from sport to sport.
There you have it. The seven prerequisites that will allow you to “Get Out of Your Head, and into the Black.” I strongly advise that you re-read these articles now, and keep them close by for review.
You must master these concepts and implement them successfully if you have any hope of joining the 2% club of winning sports bettors. Good Luck!
As an Addendum to this group of articles, I have included an 8th article which shows you how good 57% Winners Can Be. Use it in conjunction with this Money Management System to multiply your profits when making your sports picks.