What is sports betting? Just kidding.
If you’ve never placed a bet before there are three things you need to know: the types of bets, how to read odds, and how to manage your bankroll. Let’s get started.
I. Most Common Types of Bets
1. Moneyline Bets
A bet on which team or player will win the game or match outright.
2. Point Spread Bets
A bet on the margin of victory. The favorite must win by more than the spread, while the underdog must either win outright or lose by less than the spread.
Note: In hockey these are called “Puck Line Bets” and in baseball they're called “Run Line Bets”
3. Total (Over/Under) Bets
A bet on the combined total score of both teams in a game, over or under a number set by the sportsbook.
4. Prop Bets (Proposition Bets)
Bets on specific occurrences or non-occurrences during a game, which are not necessarily related to the game's outcome.
5. Futures Bets
Bets placed on events that will happen in the (more distant) future, often on the outcome of a season or tournament.
6. Parlays
A single bet that links together two or more individual bets, all of which must win for the parlay to payout. The payout is higher due to the increased risk.
Note: Same Game Parlays (SGP) are a type of parlay bet where you combine multiple bets from the same game into one single wager.
II. How To Read Odds
1. American Odds (common in the United States 🇺🇸)
Positive odds (+150) indicate your profit on a $100 bet, while negative odds (-150) indicate how much you need to bet to profit $100.
(payout=profit-stake)
2. Decimal Odds (common in Europe, Australia, and Canada 🇪🇺🇦🇺🇨🇦)
To calculate your potential payout, multiply your stake by the decimal odds. The team (or outcome) with the lowest decimal odd is the favorite.
(profit=payout+stake)
3. Fractional Odds (common in the UK 🇬🇧)
The numerator (first number) represents the profit you’ll make on a stake equal to the denominator (second number).
payout = profit+stake
III. Bankroll Management
Your bankroll is the total amount of money set aside specifically for betting purposes. (Yes, you should actually pick a number.) It should be an amount you can afford to lose without impacting your financial well-being. Bankroll management is all about risk management. Knowing how to manage your bankroll will allow you to maximize long-term profitability and minimize the risk of losing your entire bankroll.
How Much To Bet: Unit Sizing and Staking Plans
Unit Sizing: A unit is a percentage of your bankroll that you use for a single bet. Common practice is to use 1-2% of your bankroll as one unit. For example, if your bankroll is $1,000, one unit might be $10-$20.
Flat Betting: Wagering the same amount (or number of units) on every bet, regardless of the perceived value or confidence in the bet. This is the safest approach. By betting in units, you protect your bankroll from significant losses and enable it to grow over time through consistent, disciplined betting.
Percentage Betting: Betting a fixed percentage of your bankroll on each bet. As your bankroll increases or decreases, the amount of each bet adjusts accordingly. While this method can maximize growth, it also introduces more variability.
Confidence Adjusted Betting: Some bettors adjust the size of their bets based on their confidence level in a particular outcome. For example, bet 1 unit on standard confidence bets, 2 units on high-confidence bets, and half a unit on lower-confidence bets.
Note: this approach can be riskier and requires experience and discipline.
Healthy Habits: Reacting To Your Book
Avoid Chasing Losses - Chasing losses is the practice of increasing bet sizes in an attempt to quickly recover from a loss. Don't do this. It often leads to even larger losses and poor decision-making
Setting Win and Loss Limits
- Win Limits: Setting a target profit goal for a day, week, or month. Once you hit this amount, consider stopping to lock in gains.
- Loss Limits: Determine a maximum loss threshold for the same time periods. If you reach this limit, take a break to avoid further losses and allow yourself to cool down.
Record Keeping - Maintain detailed records of all your bets, including the amount wagered, the odds, the type of bet, and the outcome. This helps you analyze your betting performance, identify patterns, and make more informed decisions.
