Money Management

In gambling terms money management steps forward in two contexts. Some players interpret it as a betting money management system or a way how to crease the odds of winning. Others view it as means to properly manage your bankroll. Money management is one of the most important elements of gambling. By effectively distributing and securing your money you increase the effectiveness of the game by extending its play which leads to more chances of winning.

The objective of "money management" system is simple - is to have more profit then lose. However, it is easier said than done - players do not know when they are on a streak. The real importance of money management is the way how the game of capital is used. A player should have clear control of his play money. He must be sure that he does not lose more money than he can afford to lose. He has to make sure that he has not gambled away more money than he has and that he still has enough money for one last game. Good money management helps a player establish a clear view of his money by managing his profits and loss. By controlling the amount he is willing to risk - a player increases the frequency of games played which gives more chances to win.

It is advisable to use different money management strategies since game categories vary. In a card game like poker, which has statistically a positive expectation, it is smart if the player's minimum amount can be calculated. This amount depends on the game experience of the player; the table he is playing at and his available budget. e.g. If the player has an available amount of € 1000, then it is advisable to start the game with no more than 10Euros, so that he can theoretically play 100 times. Therefore a long term game increases the chances of winning. In the case of gambling with negative expectations (such as roulette) it is advisable that the player has a target amount that he wants to win, or better yet, that he has a loss limit. The loss limit ensures that the player does not lose more than he can financially afford. Some people doubt the impact of money management, because it cannot create a system to change the basic principle of the game. A good money management system may help the player play as long as possible and increase his fortune.

Effective money management starts with good planning. Most of us keep a budget. This is exactly what a good and conscious gambler should do. He should know exactly how his finances are. How much money is available, how much he won and lost. A Gambler has to have a clear picture on how much he is willing to lose in order to make a reward to loss justifiable.

At last every player should remember that it is very easy to leave the game you lost since you have nothing else to play with but it’s definitely hard to walk away as you are on a winning streak and already satisfied your profits. Self-control and discipline are the hallmarks of a good gambler and acts as a separator from the rest - the losers. As long as the player can use his money properly, he can also be sure that he won’t lose it that easily.