big joe

By A.P. FEZZIK. Posted: 2005/09/17

Many articles from so-called experts citing how proper money management can make a gambler succeed have recently surfaced. These views are popular with the recreational gambler who wants desperately to believe in a simple winning system.

Unfortunately, the one and only way to win over the long run is to have an advantage against the casino. Without a built in edge, even the best money management systems will be unsuccessful.

I have written about this in the past, but I think the entire topic is worthy of further discussion, especially considering all the misinformation currently out there.

Over 99 percent of gamblers are playing a losing game, one with a negative expectation. If they play long enough they will lose. It’s that simple. Many of these gamblers love to read about ‘money management systems’ telling them when to stop gambling during a session, trip or season. Typical money management advice includes these tidbits of wisdom that appear below.

Break your bankroll into pieces, and only risk a set amount per day.

Once you are up 20 units, set aside 10 units of profit. Stop whenever you regress to this point.

Stop gambling when you are down 15 units.

This type of advice gives the typical recreational gambler false confidence that he is playing a solid system which has mathematical merit. Nothing could be further from the truth.

The truth is that proper money management for the typical gambler should simply say “Don’t gamble, and if you do, bet as little as possible”. Pursuant to that, setting ANY time to stop gambling is a good idea!

Money management does become a critical factor once a player has reached advantage player status. For example, the sports bettor who is able to win over 52.4 percent of his bets will need proper money management to win over the long run. He must not over-bet his bankroll on games and he must be selective, wagering only when he does have a real edge.

Having said that, I’m convinced that well over 95 percent of sports bettors lose. The vast majority of the time, the reason has nothing to do with poor money management. They lose because they are playing a losing game, winning less than 52 percent of their bets.

It is easy to blame a dwindling bankroll on bad luck or bad money management. However, the ambitious sports bettor avoids excuses, and rather devotes his time to raising his winning percentage going forward.

Once you start winning over 53 percent of your bets, you can actually make some pretty questionable money management decisions, and still be a winner!

A.P. Fezzik is a professional gambler who can be reached at Fezziksplace.com.