In my first article for Champion Bets I wrote about True Price vs Starting Price and mentioned that the two main two keys to successful punting are:
- Seeking value at all times when placing the bet
- Bankroll management
Plenty of far better punters and judges than myself have left the game due to poor bankroll management, primarily from over-betting their bankroll.
You must treat your bankroll like you would treat the starting capital of your business… keep your cash flow high, keep a record of all your bets and monitor where improvements can be made to increase your bankroll. An example might be not betting in races over 2000m.
The size of your bankroll is of course a personal preference and depends on your current financial situation. However, for this article we will be working on a punting bank of $10,000. This does not mean you must have $10,000 loaded into betting accounts. All this figure represents is that this money is available should you need to top up after a period of losses. I would recommend 20%-30% spread across multiple bookmaker accounts and Betfair to ensure you can obtain top odds. It also means that if you are prone to chasing your losses the money isn’t in the betting accounts as a temptation.
A lot of unsuccessful punters will bet various amounts purely on a feel or if they are chasing losses in a day. Yes you may get away with it for that day and feel great for winning; however you are really just wall-papering over the cracks.
Set Betting Limits
I personally recommend betting no more than 1% of your bank on any race and 2%-3% in any sporting event due to the shorter odds available. This would mean $100 on a race or $200-$300 per sporting event from your $10,000 bank. This conservative betting amount will not only keep you in the game over a losing period but it will also keep a structure to your betting without the wild fluctuations to your bankroll.
Why not bet 5%-10% of your bank on a race or sporting event if the odds are value?
Because even if the odds are in your favour, over-betting will bring you undone in the long run. Taking $2.05 on a flip of the coin is excellent value, however if you bet too high a percentage and variance kicks in your bankroll will be in damage control.
Remember we not only want to win, we need to survive losing runs to stay in the game.
We have all had that moment where you have placed a bet that is too big for our bankroll and you can no longer watch or you are breaking out into a sweat… we want to avoid this!
Discipline and Patience
Punting is all about discipline and patience and being content with small steady consistent wins. Of course we all love to unload on a runner at 50/1 however the reality is this is not a viable long term strategy for our goal of 5-10% profit on turnover (POT). This percentage edge may seem small, however this is the margin professional punters not only aim for but deem as more than acceptable.
For example, for our $10,000 bank we have placed $800 worth of bets for the day from our Champion Bets experts and we have made $80 profit. That is a POT of 10% which is a more than an acceptable day on the punt.
If we are treating our punting bank like a business and have a professional edge to our gambling, what other investment can generate those kinds of returns in the space of an afternoon?
Adjust Your Bet Size
Every fortnight (or month) you re-calibrate the bankroll and see what the new bet amount is. So if we have had an excellent fortnight of gambling and the bank is at $15,000, our new bet amount is now $150 per race.
This conservative yet flexible approach to staking not only keeps you in the game should things go south, it also keeps you in control of the game and turns a hobby into an investment. This gives you the best chance to be a consistent winner which is what we all want.