Money management in sports betting - the key to long term profits

You might be wondering what exactly money management is and why it is so crucial to your betting strategy?
Quite simply, it's about managing your betting budget effectively, minimizing risk and maximizing your chances of winning.

Without a doubt, good money management is a foundation for long-term success with sports betting.

Let's get started and discover how you can make your bets more successful with intelligent money management!

What is money management?

Money management in sports betting is the art of managing your betting budget in such a way that you minimize risk and maximize your chances of winning.

Don't worry, you don't have to be a math professor...

But sports betting isn't just about which games you bet on, it's also about how much you wager and how you control your finances over time.

The 7 key principles of money management

The key to successful money management lies in controlling your budget. It is crucial to only use money on bets that you can afford to lose.

This means that you should never bet money that is needed for important expenses such as rent, bills or food.

The 7 fundamental principles of money management:

1. Determining the bankroll: Your bankroll is the total amount you have available for sports betting. This should be an amount that you can financially bear to lose

2. Betting strategy: Decide what percentage of your bankroll you want to risk per bet. A recommended value is 1-5% of your total bankroll per bet

3. Maintain discipline: One of the most important aspects of money management is discipline. Stay true to your strategy, even if it may be tempting to up the stakes after a losing streak

4. Risk assessment: Carefully assess the risk of each bet. Higher risks should normally be associated with lower stakes and vice versa

5. Diversification: Don't put your entire budget on a single bet. Spread your stakes to spread the risk

6. Long-term perspective: Success in sports betting is often measured over a longer period of time. Short-term wins are good, but the goal should be to be profitable in the long term

7. Keep records: Keep a record of your bets and results. This will help you to review and adjust your strategy

   In practice, various strategies for managing the budget have proven successful.

4 most popular money management strategies

In the following, you will learn about the 4 most popular money management strategies.

It is important that you choose a strategy that suits your betting behavior and that you can follow consistently.

1) Fixed stakes

With this strategy, you always bet a fixed percentage of your bankroll, regardless of the type of bet or your confidence in the outcome.

• Application: For example, if your bankroll is 1,000 euros and you decide to always bet 2% per bet, your stake on each bet would be 20 euros
• Advantages: Simplicity and less risk of losing your entire betting budget due to a losing streak
• Disadvantages: Potentially lower winnings on 'safe' bets and the possibility of winnings not scaling with a growing bankroll

2) Dynamic stakes

With this method, you adjust your bets based on the current status of your bankroll.

• Application: If you start with a bankroll of 1,000 euros and bet 2% per bet, your first stake will be 20 euros. As your bankroll grows or shrinks, you adjust the stake accordingly
• Advantages: Your stakes grow as your bankroll increases, leading to higher potential winnings
• Disadvantages: Higher risk, especially during a losing streak, as losses can lead to larger stakes

3) Stake calculation with betting units

For this strategy, you divide your bankroll into "units" and decide how many units you want to bet based on your confidence in a particular bet.

• Application: If your bankroll is 1,000 euros and you divide it into 100 units, each unit would be worth 10 euros. For a bet that you are very confident in, you could, for example, bet 5 units, i.e. 50 euros
• Advantages: Flexibility and the ability to adjust stakes based on confidence in different bets
• Disadvantages: Requires more analysis and consideration for each bet

4) The Kelly-Strategy

An advanced method that aims to calculate the optimum bet based on your own assessment of the probability of winning and the odds on offer.

• Application: The Kelly formula is: stake = bankroll x [(probability x odds) - 1] / (odds - 1). You need to know your estimated probability of winning and the odds of the bet to calculate the stake
• Advantages: Potentially higher winnings as the stakes are adjusted to the perceived chance of winning
• Disadvantages: Complex and risky, especially if the estimate of the probability of winning is not accurate

With the Asian Power strategy, we rely on a smart and flexible money management system in which we can take advantage of bonuses and still win even in the event of a loss.