Money Management is the answer
You don’t just need to have a supply of winning horses to be a successful gambler. There are many people who find themselves a winning source but still manage to lose money!
The way they manage to do this is by not being disciplined with their bets and the management of their betting funds.
When you are disciplined betting is an excellent way to make money. The key benefit of betting with your spare cash is that your money can be turned over many times.
For example if you had ?100 to invest at the Bank at 5% return per annum you would make a profit of ?5 in your first year. If you decided to invest your ?100 by betting one 20th of your ?100 on one horse each day and your selections were able to show a profit of 20% on turnover.
Then within the space of the year you will make 312 bets giving a turnover of ?3,120. 20% of this is ?624. Which is a little better than the ?5 you would make at the bank. So betting is a good investment even with a modest selection source if you’re able to be disciplined about your betting.
So what do these disciplined gamblers do that others don’t? The answer can be broken down into three activities. The first thing that your disciplined gambler does is to put aside a sum of money that is purely used for betting. This money is not to be touched for any other purpose.
Secondly the disciplined gambler decides beforehand exactly how much he will stake on each selection and under what circumstances the stake amount can be changed.
Let’s explore the use of your bank for a minute. If you have put aside a bank of ?100 and you have a series of losers and the bank is down to ?50 and you quit do you think you have used that bank effectively. No of course you havn’t you might as well have started off with a ?50 bank because the other ?50 has never been used, it is wasted money that could have been used somewhere else.
This is why you have to commit your bank as if it is already lost and you must commit to carry on until it is gone. If you cannot make that commitment when you set up your betting bank then you are not yet confident enough about your selection source and should probably investigate further.
So the first two things our disciplined gambler does, is to have a betting bank and to have a plan that they work to.
The third thing they do is to work that plan. That is to say that they decide how much money they will use and how they will use it before they get started.
To illustrate how the disciplined gambler differs from the average punter we will look at how the average punter operates, we will call our man Norman. Norman doesn’t have a bank put aside he bets with the money in his pocket, as a consequence he is not consistent with the size of his bets.
When Norman wins a few bets in a row he thinks he is invincible and the next big betting sensation so he ups his stakes, just in time for a losing spell. The losing spell wipes him out and he can’t afford to bet any more until pay-day and misses a few good bets along the way.
When Norman has a losing spell he cuts back his stakes or quits betting and consequently misses the next few winners. But because he has noticed that his selections are winning again he decides he better get back into the game, you guessed it he’s just in time for the next losing run.
Norman’s on the gamblers roller coaster and loses over the long term consistently. We need to be different we need to move slowly but surely forward. We will enjoy cheering home a winner but we know there will be more losers than winners and we continue with our plan.
Finally when you have a winning run and profits are building up you need to run a sanity check with yourself. If you are expecting to make a 150% return on your investment over the long term and recent bets are showing a 200% return then it is likely that there will be a period of less profit or of loss to balance this out.
It is less likely that your source of selections is twice as good as you expected. Even if it is twice as good as expected if our plan says we don’t increase our stakes until our bank doubles then we don’t.
To conclude the secret to successful betting is to operate in a professional business like manner. You can do it and you will enjoy it more when you are a consistent winner.
Article contributed by and copyright of Darren Power. www.betting-school.com This article may be published on your site on condition that this resource box remains, as is.