If you look at wagers as debts, then you realize that raising or lowering that limit or ceiling has a direct impact on your income and risk. If you want to avoid your own financial crisis and going broke, then you have to practice good money management. Many people say that, but few actually explain what they mean. Let's start with the goal of money management. The first rule of being in business or of being a gambler, which have similarities, is to protect your bankroll, assets.
Therefore, every decision or bet should be made with this one thought in mind, How will this bet affect my bankroll?
I know that sounds a bit odd, maybe even funny, but as simple and as obvious as it may appear, that must be somewhere in your logic stream. Financial success hinges on being able to keep making purchases until the market is in your favor. For many who buy and sell on the stock market, the old phrase, Buy low and sell high, comes to mind.
In terms of wagering what we mean is that when you wager, your wager should return a profit that will cover all wagers and return a profit on top of that. So betting in the same situation ten times and cashing three times should return the ten units that you invested plus a profit. Ten $100 win bets would equal $1,000. If you won on three of them and each one paid an average of $350 then you would collect $1,050 for your investment.
The $50 would be your profit. You would have a positive ROI (return on investment) of +.05%, in other words you would make five cents for every dollar wagered. That may not sound like much money, but in a high risk venture like horse racing betting, if you can actually get out with 5% profit after paying the high vig, or takeout, you're not doing too badly.
Keeping in mind our original problem of protecting our bankroll, when you made those wagers you would have a plan or system of wagering as well as handicapping. Your handicapping system would evaluate the runners so you could estimate the probability of each one winning. Your investment system, also know as your money management plan, would divide your bankroll into increments that were small enough so you could last through any losing streak, or downturn, and still be making wagers when your horses won.
Your debt ceiling then becomes the most money you can wager on a single race and also in a single day, keeping in mind the downturns or losing streaks
If you want to learn how a horse owner and insider handicaps just go to http://horse-racing-handicapping.co/ and get the truth about betting on horses and winning. Bill Peterson is a former race horse owner and professional handicapper. To see all Bill's horse racing material go to Horse Racing Handicapping, Bill's handicapping store.
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