The fundamentals of sound money management
by Mark Pilarski
Anyone can walk into
a casino and make the right bets and know how to play
them, but without sound money management techniques,
you can still end up going home broke.
Money management is your life-line to getting home
with some semblance of your starting bankroll. Otherwise,
you'll be hanging out in the lounge, tapped out, trying
to score free drinks. Therefore, below are money management
rules I live by when I'm out trying to procure a little
from the big guys. They will work if you rigorously
apply them.
o First, never bring
your entire bankroll with you to one gambling session.
You need to have a daily gambling budget. Start by
dividing your bankroll by the number of days you'll
be gambling. Then divide your daily bankroll into
the number of sessions you will be playing each day.
This is now your single-session bankroll. Don't bet
tomorrow's money until tomorrow comes.
o Set a goal of winning
between 50 to 100% of a single-session bankroll. Then
set aside your original bankroll plus half your winnings.
Now play with the remainder and continue to set aside
additional winnings.
o Use a winning progressive method of betting by setting
a predetermined percentage increase for each winning
bet and sticking to it. For example, I increase my
winning bets by 50% after the second win: $5, $5,
$7, $10, $15, $22, etc. I continuously flat bet (table
minimum) when losing.
o The casino's goal is to create a fantasyland experience
for its patrons. One wily way is to devalue your money
by having you bet chips instead of legal tender. Think
of the deceptive nicknames chips have. A $5 chip is
a "nickel" and a $25 chip a "quarter."
Your best self-defense is to continue to bet with
your own greenback. This way you'll always realize
its genuine value.
o If you do turn your bankroll into chips, take a
moment and carefully think about the exchange. You
must always treat chips as hard-earned cash-like the
money you save for your child's college tuition, mortgage
payments or your retirement.
o Never increase your bet when losing. A double-up-to-catch-up
strategy simulates a lamb being led to slaughter.
o Discipline is not only a significant part of being
a successful gambler but probably the most important
element of money management. You must set loss limits
and win goals. Example: When losing half your session
bankroll (loss limits) you walk, and when doubling
your money (win goals), consider doing the same.
o Identify the profitable opportunities in gambling
by shopping for the best odds, rules and playing conditions
for the casino games you will be playing. Don't waste
your time on games in which the casino has more than
a 2% house advantage.
o Never gamble with money you can't afford to lose.
Need I say more?
o Credit card gambling is nothing more than a desperate
measure to stay in action. Leave your credit and bank
teller cards at home so you won't be tempted with
the easy convenience of getting cash.
o Never quit a hand when you're on a winning streak.
Why tempt fate? You could be walking around lucky
and not even know it. Magical gambling moments do
happen. Fifteen, 18, even 20 hands in a row is possible.
When it ends on a loss, make a mad dash to the cashier's
cage.
o Finally, money management will not affect the house
advantage nor guarantee that you will win more money.
If the house has an advantage before money management,
it still has that same advantage even after you apply
money management techniques. What good money management
principals will do is minimize your losses and in
most cases protect your winnings.
Good
Casinos Home
