Watch In Fullscreen – Click Button Bottom Right Of Video
Betting On Horse Racing – Setting Up Your Betting Bank
The Betting Professional’s lifeblood is their “betting bank” or “staking bank”.
Rule #1 is to keep your betting bank totally separate from your day to day expenses. When you set up to make money from betting on horse racing your first step must be to look at your financial position and put aside a sum of money to use as your betting bank.
Your betting bank is the working capital for your business and if you “bust” your bank by being greedy or “chasing your losses” you are out of business. When betting on horse racing it is vital that you protect your bank and never overstretch or expose your bank to unnecessary risk. If you can master this you are half way to making your betting career pay. It may sound simple but so many people never learn this vital step and go on to lose money from betting on horse racing.
Why it is vital to have a Betting Bank When Betting On Horse Racing ?
The importance of a Betting bank is as much psychological as it is practical.
On a practical level once you have a set figure as your starting point of your bank you can work out exactly how much to stake on each bet. You can also record and track your success, as you see your initial bank grow or decrease.
On a psychological level if you have a large enough bank then it is far easier to treat this as a business and work out your “betting strategy” and stick to it. You will find that individual results do not matter to you and you look at your business week by week.
Betting On horse Racing and the power of “compounding”
When you are betting on horse racing and your bank grows then you can naturally increase your stake size and make your bank grow even quicker.
As an example. My personal goal is to double my bank every 20 days. When I first started to get seriously involved in betting on horse racing I started with a £200 bank, but I resolved to increase my bank by 5% per day until my bank stood at £5000 after 6 months.
The 5% Rule when applied:
Day 1 £200 Day 11 £326
Day 2 £210 Day 12 £342
Day 3 £221 Day 13 £359
Day 4 £232 Day 14 £377
Day 5 £243 Day 15 £396
Day 6 £255 Day 16 £416
Day 7 £268 Day 17 £437
Day 8 £281 Day 18 £459
Day 9 £295 Day 19 £482
Day 10 £310 Day 20 £506
Although this is a simplistic view, and one that rarely works perfectly in practice, once you focus on achieving a 5% increase to your bank daily, even allowing for losing days you should more than doubled your bank by the end of the 20 days.
TIP: Once you have doubled your bank, remove your initial “investment”. Now you are betting with other people’s money – happy days.
How much should be in my starting betting bank for betting on horse racing ?
The actual amount you can afford to invest for your initial betting bank is a very personal issue. One person may find £5000 while another £200. The actual amount is not important at this stage.
The important point is the emotional attachment. If you wince at thinking about setting up an initial betting bank of £1000 then it is too much. If you are happier with £200 then start with that. You need to be realistic with the money you can afford to set up your bank. You must be setting your bank at a comfortable level.
The money you use should be introduced as working capital and not have any “emotional” connection for you. For example, if you need the money to pay bills or the mortgage, you have an emotional connection to that money and you will not be able to make calculated betting decisions.
When betting on horse racing your bank should be big enough to absorb the inevitable run of losing bets that everyone will face, without effecting your decisions. I would suggest a minimum bank of £200 , a bank of £500 is better and a starting bank of £1000 is ideal – but it is down to the individual to decide what is right for them.
The fact is that with a large enough bank you see the bigger picture and look on things week by week or month by month, whereas if you set your bank too small or do not get the ratio right between the size of your bank and the level of your stakes, suddenly every bet seems important and any losses seem to be massive blows to you. This is very dangerous in betting as in the event of a losing bet you can go on “tilt”, similar to poker when you lose a big hand, you stop making rational decisions and start to “chase your losses” by either betting more on your next selection or even worse placing a total “gamble” bet on something you have not thoroughly researched.
The simplest way to avoid this is to bet within your means or your bank and never be greedy or stake more than you can afford. As a rule of thumb – if you are uncomfortable with your bet you are betting outside your comfort zone which usually means outside what your bank can stand.
How do I break my bank up into points ?
As I do not know what each of you is staking, I always refer to my selections in “points”. As an example a 4 pt to win bet has different meanings to each of you. If you have a 100 point bank of £200 then you are staking £2 per point – so a 4 pt bet is £8 total stake. If you had a 200 point £1000 bank then you would be staking £5 per point – so a 4 pt bet is £20.
I would recommend that you start with no less than a 100 pt bank. So if you can only afford £200 as a betting bank then you are betting £2 per point. £500 would be £5 per point and £1000 would be £10 per point when backing horses.
Get FREE Money From the Bookies
When you are setting up your initial bank to start betting on horse racing, do some research into what Free Bet offers the online bookmakers are offering, some offer up to £250 of Free bets if you open an account with them.
TIP: Also look for the “Best Odds Guaranteed” offers, many of the online bookies are now offering this facility and it will make you a fortune over the year. I have prepared a separate video dealing with this
- Set up your initial betting bank, ensuring it is completely separate from your day to day money.
- Only use an amount you can afford and have no emotional attachment to.
- Use the power of compounding to build your bank over time.
- As soon as you have doubled your bank. Take out your initial “investment”.
- Break your bank down into points – minimum 100 preferably 200 point bank.
- Open accounts with at least 10 online bookmakers to take advantage of every bonus and Free Bet offer to make your money go further.
- Open accounts with Betfair / Betdaq
Just remember – it is perfectly natural for your betting bank to go up and down, this is the nature of betting on horse racing, do not panic if you have a period of losing bets, just let your bank absorb it and maintain a strict discipline about your betting, adjust your stakes if need be – but under no circumstances make panic bets trying to make back your losses.
In the next Video and Article I examine “staking” and the importance of “level stakes profit” in betting, both backing and laying of horses when betting on horse racing.