For those of you that follow my weekly ramblings, you’ll know that I’m a big fan of patience and discipline.
These two virtues need to be applied to our money management that I keep banging on about and needs to be enforced from the outset. One way we can instil 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 affect 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 articles 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/tipster 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 up to 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 is 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 to 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.
If you like the idea of growing your bank in the way above you seriously need to check out the service below….