So as we head further into March and spring is in the air we move further along with our plan to become more profitable in our betting. For those of you that have been following this series since the New Year you should be focusing your energies on working out your bank size and getting that right ready for when you go live.
I spoke last week about bank sizes and how so many people get it wrong resulting in them never lasting the course and giving up. This money management that I keep banging on about needs to be enforced from the outset and one way we can instill this within ourselves is to save up for our betting bank. A friend of mine actually gave up betting and quit for a whole year while he saved up and worked on his portfolio. He’s now one of the most successful bettors out there.
By showing you have the discipline to save money, not spend it and build up a bank will hold you in good stead for when you do go eventually live. It also means that once the bank is in place it won’t effect your monthly income. This in itself is also paramount to your success. One of the many pitfalls of betting is that people mix it with their monthly income and this adds more pressure. By having a separate bank you release the pressure of not having it attached to your current outgoings etc. By viewing that bank as a long term investment and with a view to releasing profits from your investment you’ll be much better off.
Even if you don’t have much money you could stick a tenner aside each month and after a year you would have £120. Following the advice in these e-mails and working out your stake size you would then be able to build that small bank up and by compounding the profits you’d be surprised at how it can build up.
Here’s an example:
£120 invested. Your approach/system shows a strike rate of 25% from the paper trading you’ve done. In working out your stake size we know that a 25% strike rate would result in a possible 24 consecutive losers. We multiply this by three to protect the bank and divide this number into our £120. That’s 24 x 3 = 72. Therefore £120 divided by 72 = £1.67 per bet.
After the first month we’ve made 30 points profit. That’s 30 x £1.67 = £50.10 + £120 = £170.10
We now compound this so take the £170.10 and divide by the 72 = £2.36 as our new stake size.
Realistically you will of course have losing months but let’s assume that we average 30 points profit on winning months and lose 10 points on losing ones. We have 2 winning months followed by a losing month. Look at the compounded bank over the course of a year below:
Month 1 = £170.10
Month 2 = £240.90
Month 3 = £207.40
Month 4 = £293.80
Month 5 = £416.20
Month 6 = £358.40
Month 7 = £507.80
Month 8 = £719.30
Month 9 = £619.30
Month 10 = £877.30
Month 11 = £1242.70
Month 12 = £1070.10
I appreciate that is a fairly simple example and betting can be more volatile but it serves to illustrate how effective compounding your bank can be. That £120 has turned into just over a £1000 in a year which is incredible. Were you too carry on with that for the next couple of years you would be making 10’s of thousands a year and all from £120.
Have a look into it and think about how you could grow your bank even further. Once you’ve found that reliable method and worked on your bank sizes etc you can look into compounding your betting and grow your bank even bigger.
That’s it for this week, I’ll be back next week with more tips and ideas around your betting.