Any sports investor, expert nfl handicapper and sharp bettor understand the importance of how bankroll money management plays into having a profitable season. It’s not all about taking your best NFL picks from a solid nfl handicapper and going for the win. Bankroll management is integral when investing on the NFL, and in this post I’ll cover a few money management tips when betting on the NFL for any season.
You can never have enough education on money management and betting or investing on sports. If you can practice good money management skills in sports betting, you will go a long way. Just as you would with a prudent investment strategy into your 401K, RRSPs or the stock market and averaging down on over sold stocks and equities. You may use a money manager or investment advisor for your investment portfolio, and the same for your sports investing, but regardless of both you should still have an understanding of the fundamentals.
It’s all about taking care of your cash, and the size of bets can be any size as long as you are taking care of your bankroll. Although the concept of bankroll management seems simple and easy, yet many nfl bettors and sports bettors don’t get it. Let’s cover some tips to help you, and keep it simple.
Even the best industry expert nfl handicapper and sports investor can hit a rough patch. But knowing your limits and knowing when to take a break will always help.
If the money you’re losing is meant for investing in sports or social sports betting, in other words, money you can afford to lose, then you won’t be destroying your finances. Alternatively, putting money aside for investing in sports that you can afford to lose will keep you away from awkward and stressful financial situations.
What is your bankroll?
Apart from knowing your limits, you also need to know your available bankroll.
Remember, it’s different to have $1000 in your bankroll and have $1000 available to bet or invest. Money in-hand means you can bet with that money at any time. It also means that you won’t miss an opportunity when it presents itself.
For example, if you set aside a $1000 bankroll, allocating a betting strategy based on your comfortable level of units (what are units in sports betting?) and how many units you’ll invest, will help you maintain an ongoing approach to investing. It’s not a one shot ride to win big, or lose big. That’s gambling. But allocation X% of your bankroll on the units you’ll invest on different betting or investing opportunities, will help you invest over the season and endure the wins and losses over time. I typically advise using a conservative 1% bankroll management philosophy, but others may be more aggressive; just as those money managers on Wall Street who may invest smaller allocations of investment funds into equities over time, vs. the recreational investor who may go aggressive and go all in with an aggressive large investment into the market.
You also need to have the bankroll where it is needed. If you are betting online, you should be funding your account before betting, making the money available when you need it. And not just at one sports book, multiple sports books. Sportsbooks will offer different lines on games, and finding those opportunities to get more return with one sportsbook over another. Having your bankroll spread at a few trust worthy online sportsbooks will allow you to play and invest through each at anytime.
Not having your bankroll when its needed to be can lead to many missed opportunities.
Types of sports investing or bet types
Knowing the different kinds of sports bets and sports investments is important. Never just go with the pulse. Know the bets and get the bankroll ready for that.
Betting longshots means having a deeper bankroll since you will have a lower winning percentage but with a mathematical certainty. Other bettors will not require a deeper bankroll since they can expect a higher winning percentage.
When your nfl handicapper advises a rare opportunities, or you find one yourself, you’ll want to know the most profitable way to take advantage, or spread your leverage to to hedge against any higher risk bets or investments. For example, knowing the standard NFL bet types as spread (ATS), money lines and totals (over/under), MLB run lines, asian handicapping on soccer, as well as knowing what is a reverse.
Size of bet and investment
Knowing the size of your investment or bet on an NFL game is also important. Your bankroll is going to be according to the size of your bets. With bigger bets, you will require a bigger bankroll. Alternatively, a smaller bankroll will do with small-sized bets. Although telling the exact multiple of your bet size for bankroll would be difficult, you can still learn the general principle and find out the exact multiple using different options at the time of placing your bets.
Getting familiar with your unit value will also help you determine the amount you should invest or wager on an NFL game. You can learn more about what are units in sports investing here. For example, if you’re using an NFL handicapper service who advises 3 units on a game, the value of each unit is up to you. In general you may allocate a $100 value per unit to keep things simple, but as you get more intimate with investing in sports, different handicappers and bet types, you may have different unit values for each, and applying those to your sports investments.
Portfolio track record
Take the view of your sports investing as managing an equity investment portfolio (stocks, RRSPs, 401K, etc.), and keep a record of each bet or investment along with the most important variables.
Over time you’ll find areas where you performed best, and other areas you did not. For example, you may find your made the best ROI or yield in the NFL season vs. MLB season. Or perhaps better profitable track record with a specific NFL handicapper over another NFL handicapper, or at specific odds and unit sizes.
Simply put, keep a track record of your performance. Record-keeping is just as an important aspect of money management in sports betting as the bet itself.
If you want to go long way with winning habits, you have to keep your records up to date with all the relevant information such as bet size, status of your bankroll before and after the game, and bet types (ATS, money line, totals, etc.). Recording these important portfolio metrics will help you to determine the exact size of your future bets and help you make incremental profit over time.
Bankroll money management and applying it sports betting or sports investing can be tedious in the beginning, but once you start doing it, you will know the value it would bring to your investment portfolio, and improve your bankroll season after season.