Good Money Management Is Difference Between Winning and Losing
When you talk to successful gamblers and stock traders, they all seem to have the same approach in their respective fields. Good money management is essential to building a winning record. These individuals follow a system that they have built up from trial and error. Not being content to rest on their laurels, these people constantly tweak their system to get better results. Effective money management is about protecting your money and growing it. This means riding out your winnings and quickly cutting your losses. To increase your odds of building a winning record, here are some essential money management tips:
Know how much you're going to lose before your gambling session: A good gambler always knows beforehand how much they're going to lose. The amount they choose is based on how much they're willing to and can afford to lose for that particular session. Once this number is reached, the gambler stops playing.
Be disciplined enough to respect your stop losses: If you have reached the limits on how much you're willing to lose for that particular session, stop playing. There will always be other gambling sessions where you can play again. Playing more aggressively tends to lead to greater losses.
Never put all your funds on session or one bet: Using this aggressive and risky approach to gambling is a recipe for quickly being wiped out. Building a winning track record in gambling is a gradual process. You want to win more than you lose over time. This means taking reasonable low risk bets and quickly reigning in your losses.
Never double up when down. Never double up when down in hopes of trying to recoup your losses for that gambling session. More often than not, you're digging a bigger hole for yourself. Instead, cut your losses and preserve your capital. You will have other opportunities.
Know your risk/return: A good gambler only goes in if they know the odds of winning are in their favor. There is no sense in throwing away good money for bad bets.
Play only with money you can afford to lose: If you're playing with money you cannot really afford to lose, the stress can be depilating. If you're worried you can't pay the mortgage if you lost the money, you're likely too distracted to properly play the online casino games. The odds are not in your favor in this situation.
Use a predetermined percentage increase for every winning bet: Sometimes a gambling session will go your way. To capitalize on it, the gambler increases his successive bets by a certain percentage after their second win. For example: using a 50% ascending rate, the string of bets would be $6, $6, $9, $14, $21, etc.
Never walk away from a winning streak: If a session goes your way, ride it out. It's during these times that the gambler maximizes their winnings. Just make sure that some of the winnings are set aside to preserve your capital. Once the streak ends, stop immediately. After all, you still want to come out ahead for the session.
Play only at casinos where the playing conditions, odds and rules are in your favor: Winning is about working the odds in your favor. You should only play at casinos where the set up is more in your favor. The point of playing casino games is to come out ahead.
Have fun: If you're having fun, you tend to be more relaxed and are inclined to make the right betting moves. Playing casino games is about having a good time and relaxing.
Always remember the basics: There will be moments when you can run into a losing streak. The sessions can be difficult. It's during these times that the smart gambler needs to remember the basics of money management. It'll help the gambler avoid making rash decisions. The objective of profitable gambling is to maximize profits and minimize losses.