The Importance of Utilising a Correctly Capitalised Betting Bank

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In my last post I looked at the positives and negatives of following systems or tipsters and I came to the conclusion that finding a system with an edge was probably the best method to employ as it takes a lot of the emotion out picking your selections and also a high turnover of bets were preferable to only being very selective.

With the above in mind I thought I would take a look at the betting bank and how this subject and basic fundamental is often overlooked by the novice punter who is looking to make a long term profit.

Before you begin placing any bets it is vital that you decide what you want out of your betting. You have to decide one of two things.

1.       Are you just betting for fun?

Now there is absolutely nothing wrong with placing a few bets on the weekend hoping for the large win on various doubles, trebles and accumulators and generally these people bet out of their pocket by which I mean they have a varying amount of money each week they can play with and if they win some money they probably have another few bets and if they lose all their money then they wait until the following week or month and they start the process again.

The only comment I would make on the above is that if you take this approach you will never make a long term profit from your betting unless you hit on a very big paying accumulator.

2.       You are betting to make a steady profit

The second approach means you are looking to get a positive return for your efforts

Now the only way that you are going to do this is by setting aside a betting bank. This very simple fundamental is the first obstacle in your road to success.

Anybody who is successful at betting is correctly capitalised and working to a betting bank

RULES FOR YOUR BETTING BANK

However large or small your betting bank you should follow these simple rules.

A.      Only bet with money that you can afford to lose.

This is most important, money used for betting should only come from your disposable income. If you have priorities such as rent, mortgage utility bills etc. then these should always be paid first.

I will repeat this as it is vitally important

ONLY PLAY WITH MONEY THAT YOU CAN AFFORD TO LOSE

B.      Your betting bank is purely personal

With the above in mind the amount of money in your betting bank is purely personal. I always like to work to bank of 50 points as I am fairly cautious by nature.

Now if you work to a bank of 50 points and your bank is only £100 then you are working to £2 a point.

If your bank is £500 then you are working to £10 a point.

On various forums and social media on the internet you will always find people bragging about how much they place on their selections and this can then lead to a keep up with the Joneses mentality.

The bottom line is you have decided to do this properly and grow your betting bank steadily. If this means you are starting with £100 then that is your reality.

Never feel inferior if this is all you are playing with as if you are following a sound system then over a few years this bank can grow to a substantial amount and if you find that you are successful then you can always add funds to the bank as and when they become available.

C.      Never borrow money to bet with.

Even if you believe that you have found one of the most profitable systems never borrow the money to bet with as you can almost guarantee that if you do this the system you are following will go through a losing run which in turn will badly effect your mind set

When placing money on a betting system the process needs to be as stress free as possible. If you have borrowed money this will only add to the possible stress.

D.      Make sure that the money is used for NO OTHER PURPOSE

Your betting bank should be used for no other purpose. This is vitally important as it lets you follow your system through without fear and worry. It also means that when you go through the inevitable losing run by having this money you will still be in the game.

It is amazing the number of people who have a betting bank and start following a system only to give in after a losing run, to then only see the system make a recovery and go on to make some good profits. The probable reason for this is they either don’t have a betting bank or they have dipped into their bank and used the money to fund another purpose or purchase.

Again your betting bank is there for a reason always ensure it is there and available for no other purpose.

E.    Understand that you could lose this money

It is extremely important that you fully understand that if everything goes against you then you could actually lose your whole bank. If you are following a proven system with an edge then this would seem extremely unlikely. However it is possible and you should always except this and take responsibility that you could end up with nothing.

COMPARE YOUR BETTING BANK WITH HOLDING SHARES

One of the best comparisons is to compare your betting bank with the similar investment process of purchasing shares.

If you equate it to the following example it gives a clearer picture of what you are trying to achieve and how a correctly capitalised investment/bank should be utilised.

Two years ago nearly to the day after discussing the financial markets with a colleague I decided to invest in Lloyds Bank shares and purchased 9000 at 0.56 p for around £5000

As it transpired the market decided to go against me and 12 months later the shares dipped to around 0.24 p which meant my holdings were now £2160 which meant if I sold them that day I would have shown a loss of £2840.

However as I had put this money aside to purchase these shares and the money was used for that purpose only I was able to ride out this bad run and now the shares are priced at 0.59p which means my holdings are now back up to £5310

Now the above example is exactly the way that you should utilise your betting bank by putting that money aside and being prepared to take the rough with the smooth. Now my mind set on the above was I don’t need to sell these shares and unless I have to I have not lost any money.

If you take exactly the same approach with your betting bank then you are putting yourself in the correct mind-set to follow your system through correctly and with confidence.

BASEBALL BETTING EXAMPLE

If we look at last season’s baseball results here

On the 25th of June the system was showing a profit of +16.92 pts.

Now let’s say for example you decided to follow the system from that day and you also decided to invest a bank of £1000 to this project and to a 50 point bank this means you would be staking at £20 a point

Now the system went through a terrible run and on the 14th of July the profits went down to +1.51 pts

Which means in this 3 week period a loss of 15.41 pts which equates to a loss of £308.20

So your betting bank would then have gone from £1000 to £691.80

The system then made a steady recovery and ended up +30.43 which means that monetary wise the system gained 28.92 points which meant that the bank would have finished £1270.20

Again this shows the advantage of being correctly capitalised. Many inexperienced punters would have jumped ship long before and this is why there are very few long term profitable punters.

SUMMARY

To summarise providing you ensure that you are following a system with an edge and you are correctly capitalised with a bank that it used for no other purpose with money that you can afford to lose then you are dramatically increasing your chances of success.

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Is Using a Systematic approach to Betting Better Than Using a Tipster?

Welcome to my first blog piece on my website.

The aim of these pieces is to discuss various aspects of betting and my personal approach to the subject. I will also draw on various articles and websites for insight into the various topics of discussion.

TIPSTERS or SYSTEMS

Before I go onto posts relating to the fundamentals of betting I thought I would start by discussing tipsters and asking the question are they any good and are they worth following or are you better off taking a systematic approach to your betting.

First I will begin with Premier Betting where we have had a tough season this year and are just shy of 2 points in profit for the season. To decide on our selections we take a systematic approach by first downloading a list of prospective selections that have been created by using the software BetformPro and from this list myself and Danny Jaques then basically discuss each game and cherry pick the selections that we think offer the best chance of returning a profit.

So in theory we are betting with value on our side and our thought process was that by being more selective with our bets would be more appealing to the average punter. However we have come to the conclusion that if we want to make some serious money then this approach is seriously flawed as if you want to earn a decent living from this particular method then the amount of money that you are having to place on each selection would mean that you have to hold a bank that is beyond many peoples means as the points profit in this case is extremely low.

Again looking at the betting analysis I do for Matchbook since July 2012 I have provided them with 105 betting analysis which has shown an 8.37 pt. profit and a 7.97% Return On investment which is not too shabby at all when considering that my analysis revolves around the TV games from that weekend. However once again to make any serious money from this would mean you are having to play with a very large bank.

Now there are many tipsters out there and which ones should you follow? Well the truth is it is difficult to know and only after a very long period of time could you make a correct judgement. I believe so long as the tipster is going through a transparent set logical process where he is always gaining value then long term you should be profitable.

INCREASE YOUR CHANCES OF SUCCESS THROUGH TURNOVER

Ultimately though for the average guy in the street to be really profitable it is essential that you turn your money around quickly in the knowledge that you are using a system that has a proven edge.

This then leads me onto a comment I read on twitter from a Richard Allen  who also runs the blog http://formulafootie.blogspot.co.uk/ who stated ‘any professional gambler will tell it’s all about turnover, turnover, turnover! You can’t be scared of having a losing day.’

And of course the above comment is completely correct and it was whilst going through the above mentioned selection procedure for Premier Betting that we found that the selections we were not giving out were tending to win and this ranged from markets such as the match odds, both teams to score and the 1.5 to the 4.5 market.

It was then halfway through the season that Danny then decided to look at all of the data the software was producing and he has now produced a system which produces a portfolio of differing bets that when back tested over the past few seasons has returned around a 20% return on investment.

Now this ‘portfolio’ of selections numbers around 25 bets a weekend and the risk is spread over the 4 big European Leagues (English, Spanish, Italian & German) and this approach now gives us a far better chance of being able to substantially increase our betting banks and make a decent return for our efforts From next season we will offer Betformpro users these weekly selections along with a staking plan and we anticipate that we should see some very good returns.

As for Premier Betting a similar systematic approach will apply based on our ratings sheets however this will just concentrate on the Premier League and will involve only the match and goal line markets.

SPREADING THE RISK

Another good example of how system bets can be utilised is by looking over to the excellent blog Green All Over where Cassini runs his XX Draw system and here again an excellent return would have been made if you had followed all of the selections and here Cassini has around 15 systems on the go and admittedly placing over 2300 bets in a season may seem like hard work however if at the end of it you are showing over 50 pts. profit then I would say that this is very worthwhile especially if you look at alternative staking plans and omitting some of the less successful systems going forward.

However the main lesson to be seen here is that in Cassini’s system you are spreading your risk over 15 different systems and should one system fall down then at least you have another one to support it.

This is very similar to the approach of the stock investor who holds many different stocks in different sectors so that when a stock performs poorly the others keep him in the game by outperforming the market and this is essentially what is happening with Cassini’s 15 system plan.

RETURN ON INVESTMENT

I would just like to touch on the subject of Return On investment (ROI). There are a lot of people out there who regard this as the be all and end all. However in reality this is all for the sake of appearances as in the following example we can see that once again turnover wins the day.

  1. Punter A  has placed 500 bets in a month at £20 a time and has achieved an ROI of 5% and has a profit of £500
  2. Punter B has placed 20 bets at £20 a time in the same month and made 30% ROI  which gives a profit of £120.

 So as we can see there is huge difference here Punter A is probably working off the same bank as Punter B but as he is more active in the market he reaps the benefits in the wallet which is far more important than the eye catching double figure ROI.

IN-PLAY BETTING

As far as In-Play is concerned here I believe you are looking at an entirely different animal and it is interesting to see that Jonny Grossmark who runs the blog http://sotdoc.co.uk has come under some criticism for being particularly selective on his bets. However in my opinion there is certainly a vast difference placing a bet at Half time when you have had a feel for the game than placing a bet at the start of the match when literally you are in the lap of the Gods.

I believe that once you have done the correct research bets can certainly be staked in confidence and I believe this approach should not be compared to high turnover systematic approach.

I have not looked yet looked at using a system selection to in play football however I believe you are slightly restricted in the time that you can do your research and then get the bets placed on and covering around half a dozen games on a Saturday and Sunday can be time consuming enough.

Summary

In summary there is nothing wrong in my opinion in following any of the very good tipsters and I would certainly do your research to make sure that the service that you are looking at do things in a disciplined and correct manner.

However if you want to take your betting seriously then I believe the following approach should be taken.

  1.  Look to develop a system that gives you an edge.
  2.  Ensure that the system covers a number of rules and markets so that you spread your risk
  3. Build and turnover your bank quickly with a suitable staking plan

 For myself as well as the portfolio of bets produced by Betformpro I am now looking towards building some solid systems such as the Italian football system and the American Sports such as Baseball, Ice Hockey and Basketball to make some steady worthwhile profits. If you would like to join me on this journey of system building and testing then details can be found here.

My next post will look at the subject of the betting bank and how I believe the management of this this is one of the major hurdles to overcome if you are to be successful.

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