Want to learn to bet? Betting 101 is the place to start.
There are several types of staking plans which determine exactly how big your stake on any one bet should be. Most have their upsides and downsides, but the key to any effective staking plan is the same: it needs to protect you from going broke during losing streaks, while at the same time ensure that when you win, you’re collecting enough to cover your losses and make a profit overall. Examples of staking plans include:
Level staking calls for exactly the same stake on every bet. No matter what the price, the true probability or the selection, you have the exact same amount – for example, 1 unit – on every single bet.
This is extremely simple and how most novice punters bet: you’ll see them have their $20 on every bet for the day. Level staking is generally a poor plan – it doesn’t usually make sense mathematically. That’s because it doesn’t take into account the probability of your bet winning. As you know from earlier sections, prices can be converted to probabilities. A bookie’s price of $10 just means a probability of 10%, or that over the long-term, the bet will salute ten out of every 100 times. A rated price of $2 means a probability of 50%.
Using level staking, you’d have the same dollar amount on both of these bets. That doesn’t work. Your returns on the low-probability bets will be infrequent and you’ll burn through your bank. On high-probability bets, you won’t win enough to make a profit in the long-run. You need to vary your staking according to the probability of each bet.
Variable staking (betting to collect / betting to profit)
Variable staking is very common. The punter bets to collect or profit the same amount every bet – for example, he may bet to collect five units. As the price is different for each bet, the stake varies.
For example, if his rated price is $2, he’ll stake 2.5 units to collect his five units on a win. If his rated price is $15, he’ll stake 0.33 units to collect his five units.
This is a much more reliable method, as it takes into account the probability of each bet. High-probability bets have large stakes, but win often. Low-probability bets win rarely, but the stakes aren’t high, so the losing streaks don’t do much damage to the overall bankroll.
That’s a good introduction to staking plans. You’ll hear of many others – for example, Kelly staking or Martingale staking – that are more complex. You should ensure you fully understand these before attempting to employ them.
But for now… work out your bankroll size, and start staking correctly using variable staking!