Now days everyone is placing online bets, be it for fun, for some extra pocket money or to make some serious cash and make a daily living from sports betting.
It is easy to perform with a minimum bet of up to £2 pounds, and most sportsbooks require a minimum deposit of £25 (or euros or dollars) which in addition will award a bonus of 100% on your first deposit. That is £50 pounds to begin an online betting career or hobby, enough money to seed £1,000 for the first 3 months and grow to 5 digits by the end of the year.
But how can a rookie bettor not burn his sportsbook´s account when he knows nothing of sports betting? It all seems so confusing and insider-knowledge based with complex odds and exotic bet types.
There is a shortcut for beginners who know nothing of online betting and as long as they follow a proper money management system they can leave bet selection to the more experienced tipsters.
Open a Sportsbook Account
First off a beginner sports bettor must open a sportsbook account. To determine which is the best sportsbook will depend of your location as US citizens and Canadians or anywhere else, as Americans and Canadians can only place online wagers with specific sportsbooks registered or approved in their countries. The rest of the world have no problem with sites like Bet365 or Betfair.
Opening an account is easy and there is no need to make a deposit right-away. To claim the first time deposit bonus go to the “Promotions” or “Bonus” section to search for the coupon code and copy paste on the bank area. The bonus can also be claimed after the initial deposit but before performing any type of bet in order to be awarded in behalf of the initial deposit amount.
Most betting sites want you to claim these bonuses because when you do your account will be subject to numerous conditions that will limit the amount of money you can withdraw and when.
Should I claim a First Time Deposit?
It is very hard not to, the benefits are huge when you claim a 100% bonus, you double your Bank Roll right away. For a beginner this means funds to make their first mistakes and not burn-up their account in the first month, a gift from heaven. But it is important to know what you are subject to when claiming a bonus.
The minimum deposit should be of at least £100 pounds to properly manage a small bankroll. Initial wagers should between £2 and £5 pounds per bet (for a £100 account, even after claiming a bonus), the small wagers will soon increase with an average betting of 3 to 8 bets per day. Stakes should never surpass the 5% of your total balance amount to account for losses.
People do not understand how important money management is in sports betting. In fact, any sort of wagering practice or investment is based on the foundation of money management. Most beginners believe the key is on the strategy or knowledge of the sport and they couldn´t be more wrong.
The most wised-up sports person that has a “hunch” for match results could predict more games right than any other person and still come out penniless from sports betting if he doesn´t get his risk management right.
Key Aspects in Money Management: Risk Management and Bankroll.
Risk management is something you have to master with enemy number one being the most harsh one, your emotions. Professional bettors focus on how to reduce losses instead of how to increase profits.
In a risky practice like sports betting were the sportsbook have the edge with odds on their favor for every single bet, the bettor needs to judge his options carefully and determine “is this bet valuable enough in regards to its risk/reward?” Smart bettors only take bets they know will pay-out nicely, because this way they can lose 3 out of 4 bets and with that single win still come out in profit. This is how a Value Bettor acts.
This does not mean you should take the best odds possible in sports betting only, although it is a practice followed by many patient money making bettors that only put their money on a few but profitable opportunities.
You can also bet on odds that payout 40% to 60% of your stake, which goes against the Value Betting principle because if you lose it would take more than 2 correct bets to recover from a single bet loss, the inverted process. But with an Accumulator Betting System savvy bettors tie-up low paying bets but with high probabilities of winning to multiply their profits with a small stake.
Any method used by a bettor can be successful as long as he has a strong management plan backing him-up. With this in hand the punter knows he can take losses and protect his balance.
How to Conduct Risk Management on Sports Betting
First off determine your total balance. Like a trader this will be the entire capital you have at hand to place bets. It does not matter if it is £100 or £1,000.
Now establish how much per bet will you stake? In the world of investing the suggestion is in between 2% and 5%, for beginners 2% or even 1% for the first 10 bets is strongly suggested while experience is acquired, but no more than 5% especially with a small account as £100.
2% will mean every single bet will be of £2 pounds.
When to Increase Stakes
Experienced bettors are always reminding their followers to stay consistent with stake size. Does this mean we never increase the stake size?
You can increase the stake size in money but maintain the same percentage proportion always. So if you began with a balance of £100 and you are now up £200 your 2% stake is now £4 pounds.
Establish a Double Balance Stage Rule: Only when your balance doubles in size you increase your stake size.
Follow a pattern like this:
In the above table we actually reduced the stake size from 2% to something like 1.5% in time to play safer with our balance. If you are thinking; “Why leave all that other 98% of my money doing nothing?”, remember it is there as back-up and you at some given time there will be as much as 5 bets placed at the same time or 10% of your balance. Follow this balance management rule and you will be fine.
Think of your balance as the stage of a video game. You only advanced to the next level and grow stronger when you complete the stage.
How Much Money Should I Withdraw from my Winnings?
A very good question and we´ve got two methods to define your withdrawal amount and when to conduct.
Method 1 – Meet Goal, Define Money Target
First off you have to complete the balance goals mentioned above, after you have doubled your balance begin thinking about the winnings to cash-out and enjoy.
So only after doubling your balance whatever you produce next will be your reward.
Then define a goal of money you desire for your withdrawal and cash that out when met, leaving the balance on the goal prior to the new winnings.
Example: The balance began with £100 pounds, it is now £208 pounds. The double balance goal was reached on £200, now we want to take £50 for enjoyment. I continue betting until I reach £253 and take out £50 leaving my balance on £200.
Method 2 – Meet Goal, Define Percentage
This process is almost the same with the only difference that after the balance goal is met you define a percentage goal instead of a monetary one.
Example: You have reached the goal of £400 pounds, for your reward you desire to take out 25% of that which is £100. So you keep betting until you reach £100 pounds and then withdraw them leaving the balance on £400 pounds.
Both systems for defining your withdrawal are basically the same, the importance is producing your goal table and respecting that program during the entire sports betting career. Most traditional bettors simply make a certain amount per week and withdraw a random amount with no plan whatsoever for their money management. They might see winnings but their account will not grow at a consistent pace like someone who applies money management techniques to their account.
During the stake size process we have already covered some aspects of risk management, but there are other more complex ways of reducing risk in sports betting that require a betting system.
Developing a Sports Betting System
A sports betting system is an advanced stage in this practice. It is not as easy as it looks and it normally takes a sports bettor months or years to define his own betting system. There are many published in books, online and courses, but ultimately each bettor understands he has a unique way of betting because his personal psychology is unique.
We are all different with our betting behavior, some dedicate the whole day to sports betting while others only perform 2 to 3 bets a week. Some stick to a narrow number of clubs or leagues to bet on while others shift from sports as long as they find the proper odds. Odds can be the obsession for some while for others they will mean little compared ot match analysis.
Systems and betting strategies come in every color and flavor, they are all different and all can work or suck depending on the person conducting the bets. As stated at the beginning, the importance is balance management.
Here we do not discuss a system in particular; for that you can visit our Betting Systems section were we discuss known strategies and those new ones we have seen the most modern tipsters apply, instead we highlight the main elements to keep in mind when developing a system.
- Balance and Stake Management are at the core of all systems, so make sure to define those first.
- Define a Set of Rules – Some systems look like they can be applied by a robot for their consistency, like betting on all Manchester United games in the season with a correct score bet of 2 – 0 at home, following the Betting Roulette principle. Others allow the bettor to change sports, leagues and betting types however he likes but apply a string of bets to turn £25 into £1,000 by the end of the week, like the 1 Grand Challenges Betting Buddha applies from time to time.
Be consistent with your rules and the system will work. It will fail on individual bets from time to time but overall it should produce a ROI.
- Now that you have your system in place it is time to measure your results. Developing indicators is not a fun area of sports betting but necessary if you want to know if your system is really effective and how can you tweet it.
Bets Won vs Bets Lost – One thing is to know how much bets you have won and how much you have lost, this indicator is important but hardly the most important one because there are so many factors involved in the result of a match to remain consistent with your decisions. You cannot control outcomes or the future, so focus more on your selections based in value.
ROI – A very common indicator with professional bettors. Return of Investment is how much profit each bet gives you. We have discussed before how some systems based on Value Betting require the odds to payout at least 1 to 1 or 2 to 1 (double your stake), while others allow for odds to payout between 40% to 60% of the initial stake when tied-up in accumulators. The importance is that your bets should always produce a high return compared to your stake in order to compensate for the sportsbook´s advantage.
Remember: You want to make a profit even if you have more losing bets than winning ones.
ROI should be measured both on each individual bet and overall during a season or your full betting career. A healthy ROI should be between 10% and 15% overall.
- Test your system on paper, this means try it out for a season without placing any real money bets. Find any issues, solve them and tweak the system then apply again. When it is ready enjoy making money by sticking to it.
These are the basic steps a beginner sports bettor must take in order to remain successful in this industry. It is really simple actually and even if you are not the best of sports analysts then just stick to money management and leave the system development to pro tipsters. We follow several and you can read all about them on our tipster section. Follow our betting tips and picks which are taken from them and begin your sports betting career without much hassle.