The Meaning of Bankroll Management
Bankroll management is the way in which you handle your gambling budget. However, it is not simply a case of topping up your casino account with the money you can afford to gamble and then spending it erratically. It is a matter of planning how much to risk on individual gambling sessions and bets.
The first basic rule is that you should never be betting your entire gambling budget at once, that way you can always be sure of having a bit more money to play with on another occasion. It doesn’t matter the nature of the bet that you are placing, even if the odds are in your favour, you should always stick to this. When betting on something that you have a 50% chance of winning, such as a coin toss, you would never risk all your money on it, as you may lose everything. You should take the same approach when betting on something that you have a 95% chance of winning. If you were to bet just a few percentage of your bankroll, then if you lose it is not the end of the world and by spreading your risk this way, you reduce the role of luck and give probability more prominence.
This rule applies to individual bets; however, it is possible to zoom out even further with bankroll management to the level of gambling sessions. For example, at the beginning of the month, you may set aside how much money you can afford to gamble over the course of the month. The next thing to consider is how much to gamble in your upcoming casino session.
There is a consensus that 10% the bankroll is a reasonable amount to risk on a gambling session. This means that if you are starting with a bankroll of €1000, then in a session you should be playing with no more than €100. If you lose the €100, then you should stop playing straightaway and when you come back next time, you will have €900 in your account, which means that you would play with €90 in the next session. However, there is every chance that you will win in your gambling session, which means that the next time around 10% of your bankroll will be more than €100.
Zooming back in to the individual bets, there are also some general rules. As explained, you would never risk your entire budget on your first bet, as there is a very real chance that this will end your gambling session very quickly. The amount you will bet per round very much depends on the game that you are playing.
You need to consider the speed of your chosen game. For example, at most blackjack tables there is an average of 30 rounds an hour. If you are starting with €100, then to be safe, you should probably bet around €3 per hand, as this should guarantee you around an hour of playing time (of course, you can bet less if you want to play for longer). As your gambling session progresses, you may have to adjust your bet. If you find that you have quickly lost half of your budget for that session, then you may wish to halve your bet. Conversely, if you find you have won 50% of your budget, then you can increase your bet.
This principle applies to all games. If you are a slots player then you must remember that slot machines are very fast games and you can play hundreds or even thousands of spins an hour. It isn’t hard to find out what the average number of hourly rounds is for different types of casino games, and it is certainly worth looking into.
There is a further aspect to consider here, which is slightly more complicated. Different types of games have different variances or volatilities. A low volatility game is one that offers small but regular winnings while a high volatility game is one that offers larger winnings, but less often. Blackjack is considered low volatility while slots are high volatility. Generally, the higher a game’s variance, the more rounds you will want to play. Therefore, with Blackjack it may be ok to start around €3 per round, but with slots you will want to bet considerably less per spin.
Bankroll Management Tips
While the basics of bank roll management when you bet on casino games are not hard to understand, it can be hard to implement, especially when you are caught up in the excitement of game. To that end, here are some tips to help you.
Unfortunately, we can’t all win all of the time. We have to accept that we will have losing sessions. When this happens, it is vital that you accept it and move on. Do not try to chase your losses and do not start betting larger amounts to try to compensate.
Keep Your Emotions at Bay
This is very hard to do. Gambling is exciting, which is why it is so much fun, and we all become wrapped up in the action. However, successful gamblers who manage long-term success do so by betting with their heads rather than their emotions. If you can learn to do this, then you are well on the way to ensuring that gambling always remains fun.
Implement Strict Betting Limits
This sounds obvious, but there are actually a few different ways of looking at it. The first is the most obvious, never bet more than your budget. If you have set aside a sum of money for your gambling session, then stop once it has gone.
A variation of this is to set yourself a loss limit for a session. Even if you have set aside €100 for the session, there is no reason why you should spend all of it. You may decide that you will stop playing if you lose 90% of this, and that way give yourself an extra buffer zone.
Many players find that it is also a good idea to implement a win limit. This means that you may decide to stop playing if you win 50% or 100% more than your starting budget, e.g., if you start with €100, you would stop playing if you win another €100. This way, you can be sure that you will not turn wins into losses and it will help you increase the size of your bankroll over time.
Don’t Leave All Winnings in Your Account
It may be tempting to leave all of your money in your casino account. However, it is a good idea to withdraw money from time to time. Ideally, you should withdraw an amount equal to your starting deposit as soon as you have won enough, as that way you can be sure that you will not be losing any money.
Track Your Gaming Habits
It is a good idea to keep a record of your gambling sessions and the wins and losses. This way you can make better decisions in the future. You may begin to notice patterns, such as you tend to lose more in the evenings when you are tired. You can then adjust your habits accordingly and try to increase your success.