Bankroll management - Don't go bust all the time

[NorrisK]

When browsing the threads around here I very often see people losing their entire stash of hard earned bitcoin on bets that were possibly not the best ones to make. In the past I used to play poker, and when studying strategies, the first thing that is basically hammered into you is bankroll management . After a little browsing I figured the same goes for sports betting and probably any type of gambling games.

Bankroll management:

The thing about bankroll manegement is that when you adhere to it, the risk of losing your entire stash becomes very small. It helps you choose the size of your bets and can help to keep your emotions in check on a winning or losing streak. In short, you have a playing strategy.

The first thing you have to do is determine the amount of bitcoin your can afford to lose. Let's say you have 1 bitcoin laying around for gambling. You don't want to lose that bitcoin in one sitting and preferably make some extra bitcoin from it right? So be smart about it!

To prevent you from making emotional bets you determine a strategy and stick to it! For most games it is advisable to never bet more than 1-2% of your bankroll. In this case it means to never bet more than 0.01-0.02 bitcoin on any single bet. After winning or losing 20% of your initial stack (1.2 or 0.8 bitcoin), you readjust the bet size to 1-2% of that value. This way, you are in control of your bankroll without needing to adjust the bet size every game you play.

The second important thing is not to vary your bet size in a single session . This can turn any winning session into a losing one VERY quickly. Imagine you would bet 0.1 bitcoin on the first bet and 0.01 bitcoin on the second and third bet. If you win the second and third on, but lose the first one, you are still behind even though you won more games than you lost. If you had bet the same 0.01 on all three bets, you would have been ahead!

Thirdly, make a plan for withdrawing and depositing into your gambling bankroll . Since the bitcoin on this bankroll are not needed and you can miss it (the principle of a gambling bankroll!), you should never HAVE to withdraw for any expenses. Since you don't want to risk bigger and bigger amounts endlessly if you are on a winning streak, it may be smart to withdraw an amount every once in a while. The amount and when to do this is up to you, but remember, the bigger your bankroll, the bigger your bets can be while keeping a strict strategy. As for deposits, only deposit what you can miss and set a maximum to it! If you are on a sig campaign, you could use your earnings for this. If you have leftover money that you don't have any use for now or in the future, you could use this to fund the bankroll. It is also smart to deposit (as long as you can miss it!) when your bankroll gets too small to make decently sized bets. If you lost 90% of your initial bankroll, your bets will be tiny. You may want to fill up in that case.

I hope some stricter bankroll management can help some of you and prevent you from going bust all the time. In the long run you will enjoy the gambling more as you have more control over what you do.

On a final note, remember to stick to your strategy.

[steven0021]

of course, most gamblers will forget all of the above once they're overcome by their greed and stupidity. two very important factors that I can't find anywhere on the above post.  

[NorrisK]

of course, most gamblers will forget all of the above once they're overcome by their greed and stupidity. two very important factors that I can't find anywhere on the above post.  

I have posted multiple times that you need to stick to your strategy and that this method may help to keep your emotions in check.

If you are able to follow a strategy, you are much less likely to be overcome by greed and stupidity. But ofcourse, you have to do it yourself. You need to want to stick to a strategy.

[quentincole32]

of course, most gamblers will forget all of the above once they're overcome by their greed and stupidity. two very important factors that I can't find anywhere on the above post.  

Ask someone to stop you when you go mad , it's work to me. Everytime i do gamble i always accompanied someone, and before start play ask him/her to turn off your PC/laptop when you looks in greed or will act stupid.

[plost24]

of course, most gamblers will forget all of the above once they're overcome by their greed and stupidity. two very important factors that I can't find anywhere on the above post.  

Ask someone to stop you when you go mad , it's work to me. Everytime i do gamble i always accompanied someone, and before start play ask him/her to turn off your PC/laptop when you looks in greed or will act stupid.

i like that idea XD but you can sometime controle your self and shutdown your laptop yourself if you are angry so that will give you a chance to not losing all you have :p

[LiberOptions]

I make a rigid management of my betting stack. I never go all in with all the stack, because i don't like to risk it all.
My usual bet is about 5% of all the stack

[NorrisK]

I make a rigid management of my betting stack. I never go all in with all the stack, because i don't like to risk it all.
My usual bet is about 5% of all the stack

5% of your stack is quite a lot. On a bad streak you can burn through a good part of your stack in seconds depending on the game. It is best to lower it so you can go for longer.

of course, most gamblers will forget all of the above once they're overcome by their greed and stupidity. two very important factors that I can't find anywhere on the above post. 

Ask someone to stop you when you go mad , it's work to me. Everytime i do gamble i always accompanied someone, and before start play ask him/her to turn off your PC/laptop when you looks in greed or will act stupid.

And what stops you from going on the website when that friend is not around? Also, it is not a good guarantee as a big bet can be made without them realizing it.

You have the self control to ask a friend to keep guard, but not to follow a good money management system? I would take a good look to how you are gambling.

[quentincole32]

of course, most gamblers will forget all of the above once they're overcome by their greed and stupidity. two very important factors that I can't find anywhere on the above post.  

Ask someone to stop you when you go mad , it's work to me. Everytime i do gamble i always accompanied someone, and before start play ask him/her to turn off your PC/laptop when you looks in greed or will act stupid.

i like that idea XD but you can sometime controle your self and shutdown your laptop yourself if you are angry so that will give you a chance to not losing all you have :p

No , no one can't control ourselves when do gamble. All what will happened are we continuously chase the bigger profit (greed mode on). And you must try it, ask someone to shutdown your device once you out of control. You will realize it's helpful later.

of course, most gamblers will forget all of the above once they're overcome by their greed and stupidity. two very important factors that I can't find anywhere on the above post. 

Ask someone to stop you when you go mad , it's work to me. Everytime i do gamble i always accompanied someone, and before start play ask him/her to turn off your PC/laptop when you looks in greed or will act stupid.

And what stops you from going on the website when that friend is not around? Also, it is not a good guarantee as a big bet can be made without them realizing it.

You have the self control to ask a friend to keep guard, but not to follow a good money management system? I would take a good look to how you are gambling.

I do realize i can't control my self , even I have to committed to stick to the plan , set bankroll etc. So if I play alone possible result : busted all of my money . didn't know when exactly time to stop.

[patt0]

This is incredibly important, and I keep trying to get better at this everyday.
My main problems are not the stake value. I use 1-5% and I'm ok with that, the problem are the exit point, either when you are winning or losing.
That's the hard part of the strategy I think. Knowing when to withdraw, and knowing when to stop or deposit again.

[twister]

Very good points listed in the OP, Bankroll management is the key to gamble rightly but it is easier said then done and takes a lot of control. I find that I am able to control myself much more whilst sports gambling as compared playing dice and/or other casino games.

[NorrisK]

This is incredibly important, and I keep trying to get better at this everyday.
My main problems are not the stake value. I use 1-5% and I'm ok with that, the problem are the exit point, either when you are winning or losing.
That's the hard part of the strategy I think. Knowing when to withdraw, and knowing when to stop or deposit again.

You could put a "stop limit" of let's say -25%/+50% or something. Also, when you feel emotions start to play a role in your decisions, stop instantly, also if you are generally not feeling well during the playing.

Very good points listed in the OP, Bankroll management is the key to gamble rightly but it is easier said then done and takes a lot of control. I find that I am able to control myself much more whilst sports gambling as compared playing dice and/or other casino games.

I guess that is due to the speed factor. In sports betting you have to wait for the result which may take hours or even days. There is less adrenaline rushing through you after you make the bet. In games like dice or casino games, you get an instant rush after betting with either a win or a lose.

Try to practice sticking to a strategy and it will get easier over time. I don't expect it to be easy for anyone, but it would be a shame if you wasted days or weeks of strict bankroll management with 1 bad bet in a weak moment.

[babs1975]

This is a good insight on how one can manage his bankroll. More oftenly, gamblers do not have a plan and end up busting all their bankroll. The secret is to have an entry plan and also an exit plan. Stick to it however good the betting looks like.

[adaseb]

There are some good books on stock trading or forex trading that teach money and risk management. You guys should google these books also, they help also in gambling.

[matete]

It is important to use a very small percentage of your bankroll in betting so as to avoid busting. Consistency is the key. Changing the bet amount because of what seems favorable conditions will lead to busting.

[MissionPhailed]

Thanks for your insight ... ! Do you also have a strategy on how to bet with your $1-2 stake? Like for example 50% winning chance?

Going to test this method with a faucet now.

[Redrose]

of course, most gamblers will forget all of the above once they're overcome by their greed and stupidity. two very important factors that I can't find anywhere on the above post.  

Ask someone to stop you when you go mad , it's work to me. Everytime i do gamble i always accompanied someone, and before start play ask him/her to turn off your PC/laptop when you looks in greed or will act stupid.

That could be a good idea. An other really good idea would be restrictions on the amount played by you in a casino. If this would ever happen I would go here for sure !

[Emerge]

I mostly never follow my "strategy" lol.
I mostly play for the thrill anyway so I lose but I lose happy

Gambling for the fun not for the money is the way to go

[pocarime32]

Nice information man, i never have bankroll management. because i always greedy, like when i win around 1000% from my bankroll i always bet big for get more money. thats way i always get busted.

[zepaulim]

Nice advices! Thank you!

I also played poker for a while trying to grasp the concepts and bankroll management sure is one of the most valuable skills.

Its really hard not to get carried away with emotions. When i start betting, for the most part i stick to my strategy, but when i win BIG its like i cant control myself and i bet more. 

[JackpotRacer]

for a gambler or investor with +EV the best BR management is Kelly's
http://www.investopedia.com/articles/trading/04/091504.asp