“To fail to plan, is to plan to fail” isn’t that how the old saying goes? Betting with the aim of making a profit is something that necessitates considerable planning and discipline in order to achieve the desired results. This is no more true than in betting on horse racing. A fundamental part of betting is your staking plan, and you need to have thought long and hard about this before you place a bet.
What is a staking plan?
A staking plan is your process of deciding how much each of your bets is going to cost you. The cost of a bet, the risk you are taking, is your stake.
Staking plans are many and varied, and differ greatly in complexity from the very simple to those requiring…. well let’s just say you’re quickly going to run out of fingers and toes!
Just as trading the foreign exchanges or stock market carries a high level of risk, a well-devised staking plan will be designed so as to keep the chances of going bankrupt as low as possible. Most times you will use an acceptable risk-reward ratio so as to get a good rate of return.
Many punters enter the world of betting on horse racing with the assumption that it is all about being able to correctly predict which horse will win. They invest in all manner of betting systems, strategies and betting tips that promise to deliver profits beyond your wildest dreams.
Most of these self-proclaimed betting systems are sugar-coated to get you to spend your hard-earned money on the product. They never reveal the dark side of betting which is that it is possible to lose your betting bank very quickly if you are reckless or naive. Never has the result of a horse race ever been engraved in stone before the stalls open.
For example, and admittedly outside the scope of horse racing, not many people would have even remotely envisaged that West Bromwich Albion could take a 3-0 lead against Arsenal at the Emirates stadium in the Premier League match that took place in September 2010, eventually winning 3-2 and shocking bookmakers and punters. Especially given the historical statistics for matches involving the two clubs in the last ten years.
How about Chelsea losing 0-3 at home to Sunderland in early November 2010? But that’s how results can go. Without a proper staking plan, it is very easy to go bankrupt.
There should always be two key considerations made to achieve success in betting; making the right selection, and having a decent staking plan. Every punter is going to place a losing bet at some time. No seasoned gambler can lay claim to a 100% win ratio.
Ultimately what makes the difference is being able to get it right enough times, at the right odds, and making sure you stake wisely. Even with an impossible 80% winning rate, staking money disproportionately on the losing bets can negate the winning ones.
So what do I consider constitutes a good staking plan? Some of the key points below will give you an idea of what a good staking plan should include.
Key points to remember
1) Only betting with a disposable income for betting (income you are happy to write off).
2) Engaging a sensible percentage of your betting bank per bet, e.g. 1% or 2%
3) Stay disciplined! Do not be tempted to increase your stakes beyond the scope of your pre-determined plan when you are enjoying a winning streak. A reversal is likely to be around the corner, and you could find yourself giving everything away just as quickly as you won it.
4) Don’t ever place a bet simply for the sake of having a bet. Remember, you’re in this game to make money first, and have some fun second. That may sound blunt, but you need to treat your betting as a business first and foremost, and if you cannot get the price you want, just walk away. You cannot lose money if you do not bet.
5) Never chase your losses. Period.
6) Before you start committing cash behind your selections, paper trade that strategy thoroughly and be sure it works according to your plan.
7) It is prudent to keep records of your betting history. By reviewing your methods and results from time to time you can learn from mistakes, get to know the betting systems that really work best, and ultimately make steps forward.
Formulate a sound betting plan, stick to it, and watch your profits grow.
