Why Bankroll Management Matters
Your bankroll is the total amount of money you've set aside specifically for sports betting. Proper management is crucial because:
1. **It protects you from going broke** - Even good bettors have losing streaks 2. **It reduces emotional decisions** - Clear rules prevent chasing losses 3. **It maximizes long-term growth** - Consistent sizing compounds your edge
Without a plan, most bettors eventually bust their bankroll regardless of their handicapping skills.
The Unit System
Most successful bettors use a "unit" system:
**1 Unit = 1-5% of your bankroll**
For a $1,000 bankroll: - 1 unit = $10-50 - Standard bet = 1 unit - Confident bet = 2 units - Max bet = 3 units (rare!)
**Never bet more than 5% of your bankroll on a single wager.**
The Kelly Criterion
The Kelly Criterion is a mathematical formula for optimal bet sizing:
**Kelly % = (bp - q) / b**
Where: - b = decimal odds - 1 - p = your estimated probability of winning - q = probability of losing (1 - p)
Example: If you estimate 55% chance of winning at -110 odds: - b = 1.91 - 1 = 0.91 - p = 0.55, q = 0.45 - Kelly % = (0.91 × 0.55 - 0.45) / 0.91 = 5.5%
Most bettors use "fractional Kelly" (25-50% of the full Kelly amount) to reduce variance.
Golden Rules
1. **Never bet money you can't afford to lose** 2. **Set a weekly/monthly loss limit and stick to it** 3. **Don't chase losses by increasing bet sizes** 4. **Keep detailed records of all bets** 5. **Separate your betting bankroll from living expenses** 6. **Take breaks after big wins or losses** 7. **Adjust unit size as your bankroll grows or shrinks**