The difference between profitable bettors and those who go broke often isn't picking ability - it's bankroll management. Even skilled predictors fail without proper money management.
The Fundamentals
Bankroll management starts with one simple rule: never bet money you can't afford to lose. Your bankroll should be completely separate from money needed for bills, savings, or emergencies.
Unit Sizing
Professional bettors use "units" to standardize bet sizes. A common approach:
- 1 Unit = 1-2% of total bankroll for standard confidence picks
- 2-3 Units for high confidence picks (use sparingly)
- Never exceed 5% on any single bet, regardless of confidence
If your bankroll is $1,000, one unit would be $10-20. This sizing protects against inevitable losing streaks.
The Kelly Criterion
The Kelly Criterion is a mathematical formula for optimal bet sizing based on edge and odds. However, many professionals use "fractional Kelly" (25-50% of the suggested amount) to reduce variance.
Dealing with Variance
Even with a 55% win rate, you will experience losing streaks. Statistics show:
- A 10-bet losing streak will happen eventually, even for winners
- Short-term results rarely reflect long-term edge
- Emotional betting after losses ("chasing") accelerates ruin
Record Keeping
Track every bet meticulously. Record:
- Date, matchup, and bet type
- Odds and stake
- Outcome and profit/loss
- Your reasoning for the bet
This data reveals patterns in your betting that pure memory cannot capture.
The Long Game
Successful betting is a marathon, not a sprint. Focus on making good decisions consistently, and let the math work over hundreds of bets. Patience and discipline are more valuable than picking skills.