All successful punters have a few things in common.
Perhaps the most basic is also one of the most simple: they have a proper bankroll from which to invest.
As we’ve touched on before, successful long-term punting has more in common with investing than recreational gambling.
And of course, it’s impossible to engage in most forms of investment without having the initial capital to do so. Yet many people overlook this (or just plain ignore it) when it comes to the punt.
Unlike a real estate or stock portfolio, bookmakers don’t require you to deposit your entire bankroll initially, and this may be one reason why some punters believe a dedicated bankroll isn’t required.
At Champion Bets, we religiously recommend a 100 unit bank for all of our betting packages. Every betting approach, including very successful ones, experience variance. The growth in your investment isn’t linear, so you need a bank to ride out variance and keep you in the game during losing streaks and flat periods. Our Melbourne ratings analyst Trevor Lawson has often said that you should never be embarrassed by how little you bet. You can’t survive 15 years as a professional punter if you’re over-staking.
Yet we constantly see new members take on a Premium Package without the required bankroll to do so, only to have to bail out of their investment after losing as little as ten units. They are in the minority, but it still happens more often than we’d like.
Not having a bank simply means you run out of funds at the first sign of minor variance, and invariably have to stop investing at the bottom of the cycle. Having lost money and by not continuing with a proven approach, they miss the inevitable upswing.
Like most things, it’s best illustrated with a simple example.
Back Weir, drink beer?
Here in Victoria, our dominant trainer of the past couple of years has undoubtedly been Darren Weir.
Now let’s say I predicted this at the start of 2015 and decided to invest my punting bank on Weir runners. I also decided to take the market’s opinion into account, and only back Weir runners when they were favourite.
Had I followed this system since the start of 2015, I’d be a nice 22 units in profit (easy in hindsight, isn’t it?)
Without a 100 unit bank though, it all would have turned sour a long time ago. Check out the results by month:
Look at the most extreme example, the lowest point in July 2015. The system was down 36 units, so even somebody with a bank at that size would have been forced out.
Those with the 100 unit bank however, still had 64 units on their side with which to continue trading. What would have seemed a dire position for some would still be comfortably manageable for them.
The very next month the system made 18 units profit to kick off its recovery, which has continued into profit since.
That’s variance in action.
Would you rather have blown up an under-capitalised bank of 30-odd units, or be up 22 units and still in the game backing winners?
We continue to see disappointing outcomes for people who don’t come prepared with a genuine 100 unit bank.
Our advice to new and old members alike is simple: have a dedicated dollar amount with which to invest – that is your genuine betting bank. Divide that total amount by 100 to determine your unit size, and stick with it. So a $10,000 bank means you’re betting $100 per unit, or a $2500 bank means $25 per unit.
Being disciplined and consistent about your betting bank is one of the most important things you can do to become a successful punter.
(note: our Darren Weir “system” is purely an example for the purposes of illustration!)