Money Management is very important so that bettors can stay in the game and not go broke. The professional gambler follows a strict set of rules when wagering. The amateur plunges with a helter-skelter style that defies logic. The following floating unit system is one of the most successful money management systems:
STEP 1:Player must determine how much he can afford to lose over the entire season. This should be done for each sport separately. There should never be a limit on how much can be won. By establishing this limit the player now determines how to wager.
STEP 2:Player must establish a unit system of wagering. Player should never wager more than 5 percent of his limit (bankroll) on any one game.
STEP 3:A player must realize his bankroll will vary day to day, consequently so must the size of his wagers.
Let’s use a few examples for clarification. Let’s say that Joe lives in Las Vegas where he can wager on sports. Joe figures that from the beginning of the college basketball season to the end he will be able to comfortably lose $10,000. This is Joe’s risk capital. If he were to invest in the stock market he would have to do the same thing.
Now that the loss limit (bankroll) is established, he can proceed to establish a betting plan. Joe figures that he will be able to win between 55 percent to 70 percentof his plays. He also knows that he will probably win a higher percentage of his better plays than the weaker ones, so he needs a unit plan.
Joe now sets up the following plan. On his top games he will wager 5 percent of his total bankroll, 4 percent on his next level selection, 3 percent on the next, 2 percent on the next. He feels he will have 4 different ratings. The 5 percent play he will call a 5 Star, 4 percent - 4 Star, 3 percent - 3 Star, 2 percent - 2 Star. Now that that is established, this is what the betting plan will look like:
5 Star -
SUPER Play or
5 percent Play
$500 per game (Maximum Play)
4 Star - STRONG Play or
Play $400 per game
3 Star - MEDIUM Play or
Play $300 per game
2 Star - LIGHT Play or
Play $200 per game