Football Betting For Dummies Part 3

Money Management is the most important step in your learning journey.If you master this you will master probably about every business that includes money in it. So take out a pen and a piece of paper, or open up that word document and get this down.

So why is this step so important you ask? Because if you are going to make money, you will have to learn to manage them. Unfortunately for a lot of people if not the majority this seems like a very easy task to do, and it’s often overlooked. And guess what, the majority of the people playing and trying to make money are actually neither winning nor making money.

See a lot of people come and instead of learn to place good bets, they just GAMBLE -”I like this team I will put 100€ on it”, great you know, even a monkey can do that. But you know better than that. You read the preceding two steps and you know how to make a rational bet, emotionless, with money that you really don’t care about, following the system you have made up earlier day after day, because you are self-disciplined. You will see that you won’t feel worried like the majority of the players and you will actually enjoy this.

So let’s get to the money management part. Get familiar with the following terms: Drawdown and Maximum Drawdown. And to be easier for you to understand I will give you the following example:

Say you have 1000€ in you account and you just lost 500€! What percentage of your account have you lost? You are right if you said 50%.Now what percantage of that 500€ you have to make to break even and get back to your original 1000€?What, 50%? Wrong, you have to now make up 100% to get back to your precious 1000€. This is called drawndown, or in this case 50% drawdown.

My point is to show you how easy is to loose money from your gaming account and how hard is to gain them back up. But that can’t happen to you right? Of course it can, and it will if you don’t pay attention seriously to what we have been talking about until this point. Even with a good strategy and system that wins you let’s say 70% of the bets you place how can you be sure you wont have 30 consecutive losses before the 70 wins come?

Would you be in still in the game after 30 consecutive losses? What you aren’t going to get 30 consecutive losses? I sure hope so, but let’s be prepared and do the talking for later.

Always and always risk a very small percentage of your total account amount. Again to make it more clear let me show you an example:

Risking 2% of your account
Risking 10% of your account
Starting Amount 20,000€

By the end of the 20th consecutive loss when risking 2% you would still have 13,903€ left while risking 10% will get you down to 3,002€. Do you see the huge difference?

That’s 10,000€ right there. Of course that’s a lot of bets but even after only 5 losses the 2% risk will get you down to 18,447€ while the 10% will get you down to 13,122€.

That’s less than the 20 consecutive losses risking only 2%. What a difference that is! I bet you never looked at it this way. My point here is to teach you how to make some money management rules so after a big loosing streak you can still be in the game.

Here’s one more example of the Drawdown:

10% lost -> you need to win 11% to break even, 20% lost -> 25% to break even, 50% -> 100% to break even, 80% -> 400% to break even, 90% -> 900% to break even, and etc. Do you see the pattern?

The more you loose the more you need to break even. I hope by now you got the idea that you need to risk only a small amount of your account.

Alright you got that,hopefully, now you need to know the kind of bets you will be taking. There’s something called Risk-to-Reward ratio. Now if you are betting 10€ on an away win with an odd of 4.0 , you will profit 30€ so that’s 3:1 reward to risk ratio.

Let’s say you bet on such odds 10 times and you lost 7 times and won 3 times. Can you calculate what you have lost?Wait what nothing? That’s right. You lost 7 time x 10€ and you won 3 times x 30€ so you made an extra 20€. Now do you see that you don’t have to be correct 100% of the time? You don’t even have to be correct 50% of the time. Pretty cool eh?

So let’s sum up everything that we talked about here:

Drawdown WILL get to you at some point. The less you risk the less the drawdown will be.
The more you loose from your account the harder to break even it gets.
Bet only small percentages of your account 2%-3% max.
Bet if possible on higher Risk-to-Reward ratio. The higher it is, the less right you have to be.

Do you feel ready now to start your football betting journey? If yes again, go to the Bookmaker Reviews section, pick one, the one that suits you best and register.

Related posts:

1. Football Betting for Dummies Part 5
2. Football Betting for Dummies Part 4 – Creating Pain Free Analysis
3. Football Betting For Dummies Part 2
4. Why you should never bet on low odd soccer games!