Money Management in Event Forecasting
Money management is one of the most important skills every successful player should have. Many newcomers to prediction ignore this vital thing and think that just being able to predict sports and other outcomes is enough. Of course, talent and the ability to predict is necessary, but it is not enough. Without proper money management, any player, even the best one, will sooner or later end up in deficit.
What is money management in forecasting?
Each player’s work day begins about the same way. He opens the offer of events that will happen that day (or the next day). He creates predictions for each event he is interested in.
It is a painstaking process that requires time, attention and concentration. The player then decides which events to enter, taking into account all the necessary information.
This is where knowledge of money management, or as we said before, the ability to manage one’s capital comes into play. It is best to think of money management as the financial management of your company, because predicting events is the business that you are in. You are investing your knowledge, time and money to make a profit for the foreseeable future.
Capital management systems
The first and most important thing in good money management is to determine how much starting capital you are willing to invest in forecasts. We recommend investing money that you can afford to lose without burdening your family’s daily budget. That way you can never bet more money than you are prepared to lose, because predicting events is a risky business. This advice is also relevant to other gamblers who prefer to gamble in a variety of games of chance.
There are several theories on how best to manage your money, and this article will explain a bit about each of them.
This is the difference between the two systems:
Flat System — This system uses the same amount of money for each prediction in each event you play. Each prediction is always taken with the same amount of money. This method best shows how successful you are and what your hit rate is, as well as your return on investment (ROI). In addition, it is quite difficult to put yourself in an awkward bankruptcy situation with this system because it is a conservative method in forecasts that does not have large swings in your capital.
Units System — In this system, the goal is to use a different amount for each prediction depending on what value you see in the odds. The scale varies from 1 to 10 units. We think this is a reliable system, especially for those who are new to sports betting. This type of betting system makes players’ bankroll much easier.
Example: the initial amount for each prediction is $100, you want to participate in the prediction of the cryptocurrency rate (fall or rise), if you are clearly confident that the coin will grow in the next few hours and assess the chances as 10/10, then bet $100, if you are not confident in your forecast and think that the chances are still, and assess the situation, for example, 2/10, then the amount of your transaction will be $20.
How to use money management
Since your prediction budget determines how successful you are at guessing the outcome of events, you must be very disciplined. Every prediction you make should be within prudent money management.
The general consensus (which we also agree with) is to invest 1% to 5% of your bank. 1% is pretty conservative, but it gives you the ability to research predictions without fear of bankruptcy. 5% of your capital is considered very progressive and is not recommended for beginners. If you play this model in a disciplined manner, it is quite possible to make money on forecasts.
We recommend sticking to the golden mean. 2–3% per prediction is the ideal and most profitable way to take care of your capital.
So, if your bank is $1,000, each bet should be $20 or $30. When you have mastered money management skills, you will immediately see that your capital has become, if not bigger, then much more balanced.
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