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Money Management

The average punter loses his money to the bookmaker largely as a result of poor money management. Bookmakers can from time to time present very good prices, especially after the bookmaker has had a few good weeks (often weeks with surprise results, many favourites losing, etc), and punters' accounts are running empty. Bookmakers know that even if they present a few good odds (I mean really good odds), average punters will most probably deposit more money, and most certainly win this time, thereby increasing their bookmaker account.

This is fine by the bookie, because he knows that the customer most likely will have an empty account in a few weeks time due to his poor money management anyway. The bookmaker will see this loss as a short term investment, because the average punter will feel aroused by his winnings, he's getting eager, and start to bet more often and often with higher stakes. Inevitably, the bookie's getting his money back, with a solid interest on top.....

Professional punters know that bookmakers operate this way, (presenting good prices every now and then, get money circulation, let the customer feel he's winning, thus generating more cash flow, and eventually more money in the bookmaker coffers), and therefore they wait patiently for the next round with extra good prices offered.

The professional punter does not get carried away after a few wins. He knows what to expect, and acts thereafter. The professional punter is not necessarily better to predict an events outcome than other punters, but he's definitely much better with money management.

There are a number of systems for money management, which are widely used by punters. You will find a selection of them under Betting Systems. We recommend that you read some of them, particularly the Kelly Criteria

If you are a punter with a high-risk profile (you like to gamble), and you know that you rarely predict better than the bookmaker, then Martingale, or one of the other negative progression systems, could be your money management system. But beware of the dangers represented with these systems. Their progression rate can be devastating, and can break you just as soon as you’ve started.

If you have a low risk profile (you consider betting to be an investment with slightly more risk than a stock fund), and you know you are able to predict slightly better than the bookmaker, then Kelly is your system. Kelly is the system of the professional punter, a system for punters who thrive for perfection. A system that optimizes the handling of your funds, if, and only if, you can predict better than the bookmaker.

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