In this article I will examine the importance of setting up a betting bank for yourself which is affordable but also allows you to absorb any losing runs which are inevitable in betting. In short the odds monkey lifeblood is their “betting bank” or “staking bank”.
The key thing to remember is that you must keep your betting bank totally separate from your day to day expenses. When you set up to make money from betting on horse racing your first step must be to look at your financial position and put aside a sum of money to use as your betting bank.
Your betting bank is the working capital for your business and if you “bust” your bank by being greedy or “chasing your losses” you are out of business. It is vital that you protect your bank and never overstretch or expose your bank to unnecessary risk. If you can master this you are half way to making your betting career pay. It may sound simple but so many people never learn this vital step.
Why is it so important to have a Betting Bank?
The importance of a Betting bank is as much psychological as it is practical.
On a practical level once you have a set figure as your starting point of your bank you can work out exactly how much to stake on each bet. You can also record and track your success, as you see your initial bank grow or decrease.
On a psychological level if you have a large enough bank then it is far easier to treat this as a business and work out your “betting strategy” and stick to it. You will find that individual results do not matter to you and you look at your business week by week.
How much should be in my starting betting bank?
The actual amount you can afford to invest for your initial betting bank is a very personal issue. One person may find £5000 while another £200. The actual amount is not important at this stage.
The important point is the emotional attachment. If you wince at thinking about setting up an initial betting bank of £1000 then it is too much. If you are happier with £200 then start with that. You need to be realistic with the money you can afford to set up your bank. You must be setting your bank at a comfortable level.
The money you use should be introduced as working capital and not have any “emotional” connection for you. For example, if you need the money to pay bills or the mortgage, you have an emotional connection to that money and you will not be able to make calculated betting decisions.
Your bank should be big enough to absorb the inevitable run of losing bets that everyone will face, without effecting your decisions. I would suggest a minimum bank of £200, a bank of £500 is better and a starting bank of £1000 is ideal – but it is down to the individual to decide what is right for them.
The fact is that with a large enough bank you see the bigger picture and look on things week by week or month by month, whereas if you set your bank too small or do not get the ratio right between the size of your bank and the level of your stakes, suddenly every bet seems important and any losses seem to be massive blows to you. This is very dangerous in betting as in the event of a losing bet you can go on “tilt”, similar to poker when you lose a big hand, you stop making rational decisions and start to “chase your losses” by either betting more on your next selection or even worse placing a total “gamble” bet on something you have not thoroughly researched.