get asked a lot about Money Management in gambling. It is not a topic I address often, because money management is just mathematical voodoo. What you can expect to lose gambling is the product of the total amount you bet and the house edge. It does not make any difference how you break up your total amount bet. Given the same game, the expected loss is the same making a million bets of $1 and one bet of $1,000,000.
While money management does not change expected loss, given the same game and total amount bet, it can affect variance. Here are some money management strategies, according to what your goal is.
Player 1 plays for the social aspect of gambling, not so much to win. He prefers to bet conservatively, minimizing his risk of losing, while at the lost of likely not winning either. This player should flat bet. In other words, his wagers should be the same every bet, or close to it.
Player 2 is a risk seeker who wishes to either win a lot or lose a little. Of course, with a high winning marker, and low losing marker, it is more likely to achieve the losing one. The appropriate strategy for player 2 is to press his luck after wins, letting them ride. Most of the time the player will hit a loss before reaching his winning goal, but sometimes hit a good run and parlay his wins to whatever makes him happy.
Player 3 is a small win seeker, at the expense of the chance of a large loss. There are many betting systems that cater to this goal, but they all press bets after losing, until there is a win. Often this player will leave the casino happy for reaching his modest winning goal, but the occasional large losses will take back all the
small wins, and more.
Judging by the ratio of expected loss to total amount bet, all betting strategies and money management systems are equally worthless. How much you bet and why should depend on the reason you are playing in the first place. Whatever form of money management you choose, once a bet is made you should always follow the best mathematical play. Finally, never pay for a betting strategy. As mentioned, they are all equally worthless, so you may as well use one of the free ones easily found on the Internet.
Every gambler should remember three simple tips for gambling money management. Gambling is an entertainment enjoyed by millions of people and games of chance are more popular and easier to find now than at any time in the history of the United States. What better time for a little refresher in how to protect your bankroll.Number One: Determining your bankroll
This may seem silly, but the number ofpeople that skip this simple rule is staggering, probably because people forget that they are actually risking their money when they play a game of chance. I've seen countless players risk every penny in their pocket. Sometimes they play table games or slots with their rent money.
The most important thing to do is budget your money and figure out what you can spend (risk) for entertainment. Gambling is entertainment, and while the thrill of winning is great, it is not guaranteed. Determine your gambling bankroll for the month and don't exceed it.Number Two: Learn the games you are playing
Sure, this sounds easy, but we humans are fickle and impetuous creatures. We like new things and we often leap before we look. If you've never played blackjack before, is it a good idea to risk all your money at the casino playing the game? No.
Put some time into learning the rules of any game you are going to play, whether it is craps, blackjack, roulette or even the slot machines. We are all suckers for
new things, but when you pass that new table game, don't immediately sit down and risk your cash. At the very least ask the dealer or a pit boss for a pamphlet with the rules to the game and figure out what it will cost to play.
For instance, say you see the new World Poker Tour 3x Raise table game and it looks innocent enough. There are two side bets and an ante. If you play the hand (which you should 90-percent of the time) you have to place another bet three times your ante. If you bet $10 on each bonus and $10 on the ante, you would then bet $30 on the "raise" and have a total of $60 in action. The house edge total is about 2.8 percent. An average blackjack player is at a disadvantage of about 2 percent, basic strategy players only about .75 percent. Is your bankroll strong enough to handle $60 bets?Number Three: Set a time limit for your play
This is a very crucial rule to follow because the longer you play and the more hands or spins of the slot reels you bet on, the more expensive your trip to the casino will be. Too many players start off hot and win the first hour or so, but keep playing through thirst, hunger, and sleepiness because they think they will continue winning.
The truth is, if you play long enough, you will lose. End of story. If you budget your time as well as your money and learn the games you are playing, you can enjoy your trip to the casino. Some times you will win - enjoy the rush, take the cash, and play another day on the casinos' money! When you lose, take it in stride because you budgeted for some entertainment, not to win your rent money.
Successful casino gamblers understand the math and odds behind the games, but discipline with money is also critical. Managing your money at a casino requires self-control. Use these tips to keep yourself in the safe zone:
Never borrow money while gambling. Chances are good that you’ll lose it, making a bad situation even worse.
Only bet what you can afford to lose. Gambling with money you’re scared to lose is neither enjoyable nor wise.
Set and stick to a budget. Write it on your forehead if you have to, but no matter what, when you hit that number, leave the casino.
Avoid ATM machines or lines of credit. Using credit is a really easy way to get financially overextended while gambling.
Limit your playing time. Taking a break keeps your mind sharp.
Hotel rooms have beds — use them. When you only gamble a few times a year, it’s tempting to play marathon sessions. But your body and your bankroll aren’t built to handle the casino’s pulsating 24/7 schedule, so make sure you sleep and rest.
Don’t drink and gamble. If the casino serves drinks for free, you should be very suspicious.
Remember the law of gravity — what goes up must come down. Casino profits soar when players get greedy. Quitting with a small win is far better than losing your shirt.
Don’t play any game you don’t understand. One of the fastest ways to burn through your cash is to jump into a game where the rules or strategies confuse you.
Never lie about your wins or losses. If you find yourself deluding a person or several people in your life about your gambling, take pause and reevaluate your gambling.