For pro sports gamblers, the most important factor of sports gambling is related to money management. While possessing the expertise and knowledge to pick the right teams is very important, the proper money management is essential tp having a profitable season. The odds of the sportsbook are that every player will choose winning teams on one wager or the other, but the majority of people do not know how to handle their money in a way that will increase profit possibilities and minimize the potential for loss.
The first and most important step in managing money for sports book betting is creating an account or fund that is strictly dedicated for making wagers. This fund is commonly referred to as a players ‘bankroll’, and should be an amount that you can expect to lose without putting you in a financial bind. Funds to pay rent, mortgage, or investments should be paid before setting money aside for this purpose. True with any gambling venture, players should not play if they cannot afford to lose the money they are putting at stake. Once a handicappers bankroll is started, it is now time to decide the amount you are willing to wager on each game. The favored method of pro gamblers is betting a certain percentage of their bankroll on each wager, this is referred to as the Kelly Criterion method. Almost all successful sports book money management system will utilize a variation of this method.
Mr. Mr. Kelly’s method was formulated in the 1950′s and is a sure method used for all sports gambling types including horse racing, parlays and even the stock market. This method uses a mathematical formula based on the odds and the odds of winning. The calculation is actually fairly simple and involves three steps The first is to multiply the odds of the single event by the odds of winning. Then you subtract the odds of losing from the answer of the first step. Finally, you take the solution of step two and divide it by the odds.
The percentage noted by the solution of the Criterion formula will be the percentage of your bankroll that should be bet. Once you have determined the percentage of bankroll to use, choose the wagering type to wager on. Selecting a straight wager has better odds and will improve your chances of success over time. A parlay wagered, requires less money to be wagered and has a bigger return on investment, but far worse odds. Keep in mind each betting type has it’s own advantages and disadvantages, so choose wisely.