Many horse racing fans watch horse racing because of the thrill and excitement. However, did you know that most of them watch horse racing not just because it’s entertaining but also because it’s also profitable? Thousands of people bet on the races daily, but only a few take it seriously.
Of course, we have nothing against people who are only betting on horse racing for the fun of it, but if you’re serious about gaining a profit, then you’re in luck. This is because, in this article, we will talk about some tips on properly managing your bankroll.
Yes, we know that it’s not the most fun topic, but learning how to manage your bankroll correctly is one of the primary skills you should have to succeed in horse racing betting. Later in this article, we will be discussing some tips you need to learn if you want to make your bankroll last longer and grow over time.
What is a Bankroll?
Your bankroll is the money you set aside for horse racing betting. This is your main lifeline for betting, so prolonging it and growing it as much as possible should be the main interest in your betting career.
How exactly do you establish your bankroll, and how much should you put in it? There’s no limit on how much money you should put in your bankroll, but it should always be ‘extra’ money allotted for betting alone.
We want to emphasize this because beginners tend to make the mistake of putting in money that is important for later. This is a risky move, primarily if the money is meant to be used for necessary expenses like monthly repayment for your house, college funds, etc. Thus, make sure the money you have in your bankroll is money you’re okay with losing.
Stick with Your Budget
The most crucial thing in bankroll management is to have a plan. Even though this tip might seem basic, you’ll be surprised at the number of people who go and bet without a budget. One of the things you can do is to decide on bet sizing or create a limit on every race.
For example, you can opt to only spend $10 on a race that you can divide into different bets or on just a single horse. You then start calculating the cost of a horse bet and then divide a considerable part of your bankroll in a single event like the Triple Crown, where you can perhaps give $50 each for the Kentucky Derby, Preakness Stakes, and the Belmont Stakes.
Bet Sizing
Speaking of bet sizing, how much money should you put in each bet? One of the most recommended amounts that experts use is 5% of your entire bankroll. For example, let’s say you have $100 on your bankroll. 5% of that would be $5, which should be the maximum amount for each bet.
Furthermore, you can spread this out in multiple horses, like having $2 for horse A, $2 for horse B, and a dollar for horse C, or you can put it all on a single horse.
Don’t Bet on Everything
Not all races are created equal, as some of the races you’ll come across can be deemed unplayable. Because once you know how to read horse odds, you’ll know that all horses in that particular race have no value — one good example of this race with a false favorite.
False favorites are horses that are artificially jacked with payouts that make them seem to be the favorite, while in reality, they have no potential to win. Therefore, it would help if you only bet on races and horses with value.
Keep Notes of Your Bets
Sometimes, the biggest enemy you have is yourself. As cliché as that can be, it’s true, which applies to horse racing betting. If you don’t start taking notes, you wouldn’t know which bets are your weaknesses and which of them are your strengths.
For example, you’re bad at picking horses for a trifecta. You wouldn’t know if you didn’t take notes, and by taking notes, you can practice more for the future. Note that exotic bets are harder to win, so you’ll study up as much as possible.
Leave Your Credit Card at Home
This doesn’t only apply to your bankroll but to your financial stability as well. When we have a losing streak, sometimes, we want to chase some losses. It’s not recommended to do this, but some people can spiral out of control and involve their credit cards in the mix. Of course, this is financially dangerous as it can bankrupt you in the blink of an eye. Thus, before that happens, please don’t bring it with you to the races.
Final Words
Bankroll management may not be the most fun topic to discuss, but it’s one of the most important aspects of betting. Without your lifeline, you wouldn’t be able to bet on horse racing. That said, managing and prolonging your bankroll should be the first thing on your priority list.
