{"id":714,"date":"2022-09-26T10:25:25","date_gmt":"2022-09-26T10:25:25","guid":{"rendered":"https:\/\/bfhubprod.wpengine.com\/hub\/?p=714"},"modified":"2025-02-25T11:57:25","modified_gmt":"2025-02-25T00:57:25","slug":"staking-and-money-management","status":"publish","type":"post","link":"https:\/\/www.betfair.com.au\/hub\/education\/racing-strategy\/staking-and-money-management\/","title":{"rendered":"STAKING AND MONEY MANAGEMENT"},"content":{"rendered":"
\n
\n
\n

WHAT IS STAKING AND MONEY MANAGEMENT?<\/h2>\n <\/div>\n <\/div>\n \n \n \n \n \n
\n
\n
\n
\n

The approach you take to staking and money management is just as important to your chances of being a winning punter as the method you use to select your bets. If you don\u2019t get it right, then it won\u2019t matter how good your selections are, there will come a time when a normally expected losing run will create so much financial pressure that you either give up, change your strategy, or worse still, lose all of your money.<\/p>\n<\/div>\n<\/article>\n

\n

In my experience, the difference between professional punters (or simply winning punters) and those that don\u2019t win is around 35% related to the way they analyse races and make selections\u2026 and 65% related to their betting habits. There are plenty of punters that can make selections that are profitable in the long-term, but poor decisions in relation to the way they stake and manage their money stops them from ever achieving sustained success. The most common mistake is simply betting too much relative to your total money available and the inability to follow a consistent plan.<\/p>\n

If you want to adopt a more professional approach to your staking and money management then following these 6 key tips.<\/p>\n<\/div>\n\n <\/div>\n <\/div>\n \n \n \n \n \n \n \n

\n
\n
\n\n \n \n \"\"\n \n <\/a>\n \n <\/div>\n <\/div>\n <\/div>\n
\n
\n

1. ESTABLISH A BETTING BANK<\/h2>\n <\/div>\n <\/div>\n \n \n \n \n \n
\n
\n

A betting bank is money that you put aside for the purpose of betting and nothing else. It\u2019s your working capital, just like any other business would have.<\/p>\n

It doesn\u2019t matter if it\u2019s $500, $1,000, $5,000 or more. The important thing is to have that amount dedicated to betting and nothing else. That doesn\u2019t mean you need to have 100% of that money put aside to start with, but you should at least have half of it and be prepared to make contributions until it builds to the full amount.<\/p>\n

Betting success is built on the consistent implementation of effective strategies and sticking with those during the natural ups and downs of the game. Not having a dedicated betting bank prevents you from doing this.<\/p>\n

It doesn\u2019t matter how small the amount, put aside a betting bank<\/strong><\/p>\n\n <\/div>\n <\/div>\n \n \n \n

\n
\n

2. HAVE REALISTIC EXPECTATIONS<\/h2>\n <\/div>\n <\/div>\n \n \n \n \n \n
\n
\n

Having realistic expectations is essential to maintaining the mindset needed to make good betting decisions. If you have a betting bank of $1,000 or $2,000 then you can\u2019t approach betting with the idea that you want to win $1,000 or $2,000 in a day, week or even single month.<\/p>\n

Unrealistic expectations lead to impatience and poor staking decisions, which you later regret.<\/p>\n\n <\/div>\n <\/div>\n \n \n \n

\n
\n

3. UNDERSTAND THE NEED TO BALANCE PROFIT AND RISK<\/h2>\n <\/div>\n <\/div>\n \n \n \n \n \n
\n
\n
\n
\n

The objective of betting is to:<\/p>\n

\u201cMaximise real profit dollars<\/strong>\u00a0within a risk threshold\u00a0you<\/u>\u00a0are comfortable with<\/strong>.\u201d<\/p><\/blockquote>\n

Every punter understands the goal of maximising profit. However few are mindful of the need to balance that with the risk they confront.<\/p>\n

Risk comes from losing runs that are a natural part of betting. If you average 30 winners in every 100 bets then there will be periods where you back more than 30 winners and therefore make a big profit. There will equally be periods where you back far less than 30 winners and incur a big loss.<\/p>\n

These variations in winners cannot be avoided; it is the nature of probability and statistical variance (Google<\/a><\/strong>\u00a0for more info.) The extent to which those losing cycles take money out of your betting bank is effectively presenting you with risk. There\u2019s the risk of going broke or more likely, the risk of draining your bank to the point that you don\u2019t feel confident enough to continue.<\/p>\n

As a successful punter you need to maximise your profit, while making sure that you are betting at the right level so that these normally expected losing runs don\u2019t reduce your bank beyond a level you can handle.<\/p>\n<\/div>\n<\/div>\n

\n
\n

<\/h3>\n

One key component of this approach in its purest sense is being able to accurately estimate your value edge on each bet. For example, is the horse available at a price that is 10% value on its true chance, 20%\u2026 or more?<\/p>\n

Big betting syndicates and experienced winning punters have the right intelligence and historical proof of calculating their advantage on a particular bet. The average punter does not have that certainty and will typically over estimate what their edge really is, which leads to betting too much.<\/p>\n

For that reason, my recommended approach for a standard win bet punter is that when staking each bet, you should:<\/p>\n

\u201cBet to COLLECT 4% to 5% of your betting bank based on the price you receive from the market.\u201d<\/strong><\/p><\/blockquote>\n

The first key point is the concept of your betting bank. Your bet is not a percentage of the amount you have for betting that day, it\u2019s a percentage of the total amount you have in your betting bank.<\/p>\n

To make the maths simple I will use an example of a $10,000 betting bank.\u00a0In this scenario each bet you make will be to collect $400 (4% of $10,000) based on the price you receive from the market (or your best estimation of the price if betting top fluctuation.)<\/p>\n<\/div>\n<\/div>\n\n <\/div>\n <\/div>\n \n \n \n

\n
\n

BET SIZE EXAMPLES\u00a0<\/h2>\n <\/div>\n <\/div>\n \n \n \n \n \n
\n
\n
\n