Fundamentals of Sports Betting as a Business
This is not a get rich quick scheme. Do not be greedy. You cannot extract more money out of this business than you deserve. Bet with your head not over it. There are no such things as LOCKS, GAMES OF THE YEAR, or handicappers that over the long haul can produce higher than a 55.0 % winning record. I am sorry if the above information bursts your bubble but you need to know the truth oh and by the way there also is no Santa Claus.
The good news is however if you are patient, disciplined, and follow proper money management procedures you can make a lot of money over the long term. Over the years I have met many talented sports handicappers who were GREAT at picking winners however many are bankrupt because they lacked the discipline and money management skills necessary in order to be successful. Remember this is a marathon not a sprint. There will be long losing streaks ; there will be many bad beats it is just all part of the tax so to speak that we pay for success.
MONEY MANAGEMENT – UNIT BETTING
You often hear these terms talked about but what do they mean? A unit is the amount that you RISK on each play. I want to stress the word RISK. It is not how much you will win on each pick but how much you are exposed to lose. For example a game at -1.10 you will be risking 1.0 unit to win 0.91 units (1.00 ÷ 1.10 = 0.91). Conversely if the game is + 1.35 you are risking 1.0 unit to win 1.35 units (1.00 x 1.35 = 1.35). Got it. Good.
So what is the dollar value of a unit ? For everybody the dollar value is different, however the formula to calculate is the same a unit should be but no greater than 2% of your bankroll.
So what is your bankroll? Do not fool yourself here. It is not the money used for personal expenses. It is not the money you MAY have coming in a few months. It is the money you have allocated long term to this business that you will not need for anything else. Of course as time moves forward and you start to experience success or you have more money to invest in your bankroll your dollar amount of your unit can be adjusted.
FLAT BETTING
Lastly I am a firm believer in flat betting So what does flat betting mean? I believe each play is equal otherwise we would not play it. Therefore each play represents again risking 1 unit. We will not risk less or more on any 1 play. It does not matter if we have won 10 in a row or lost 10 in a row prior, or it does not matter if I have tomorrows newspaper with the final score (maybe there was a misprint) it is 1 unit end of story.
Not everyone can learn to hit 300 in the major league of baseball, not everyone can learn to be a quarterback in the NFL if you do not have the physical tools. However I can teach anyone to be successful in this business if they are willing to follow the fundamental principles as outlined above.