UnderGround Forums >> Practical Bankroll Management for MMA Betting pt 1
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|2/13/13 4:21 PM|
Edited: 02/13/13 4:24 PM
Member Since: 12/29/12
"An investment operation is one which, upon thorough analysis, promises safety of principal and an adequate return. Operations not meeting these requirements are speculative."
-Benjamin Graham and David Dodd in Security Analysis
As you can infer from the title of this article, this bankroll management advice is geared towards the MMA betting hobbyist as opposed to the MMA betting professional. A professional would be someone who makes all of their income from MMA betting and gambling, or someone whose primary income source is from MMA betting and other gambling sources. The hobbyist is someone like myself and the majority of you reading this who take MMA betting seriously and do our best to make a profit from it. But for us MMA betting is not our sole source of income or our primary source of income. In my opinion, bankroll management strategies and goals differ depending on whether one is a professional gambler or a hobbyist with a separate primary income source.
Since relying on MMA betting as your only or primary source of income is foolish behavior, and since myself and the vast majority of you reading this are MMA betting hobbyists, my MMA betting bankroll management advice is for the hobbyist and not the professional. As a professional gambler bankroll management is your lifeblood. It is everything. It is a vital organ in your body, and if you do not treat it properly it will get sick and kill you. As a professional bankroll management is what sustains you and poor bankroll management can put an end to your gambling career.
But for a hobbyist bankroll management is different. It is not that important and is probably the most over-talked about and over-worried about topic by the MMA betting hobbyists. As a hobbyist whose primary sources of income comes from something totally unrelated to your MMA betting, you do not really need to worry about bankroll management in the way that it is commonly thought about. When bankroll management is being thought about in regards to the professional gambler or poker player the goal is to avoid going broke because of variance.
Phil Ivey is the best poker player in the world, but if he sat down with 100% of his bankroll and played a heads up match against Donald Trump there is a significant chance that Ivey would go broke and lose all his money because of variance. Playing with 100% of your net worth in a heads up poker game is poor bankroll management under any circumstance. But if Ivey played Donald Trump in 20 heads up matches with 5% of his bankroll on the line in each game there is a less than 1% chance that Ivey would go broke. The goal of proper bankroll management for the professional gambler is to avoid going broke.
But for the MMA betting hobbyist "going broke" does not really matter and isn't a major concern. If an MMA betting hobbyist (which remember is someone with a different primary income source) "goes broke" and loses his MMA betting bankroll, it is not a major concern because he can just replenish his bankroll by taking out some money from his separate income source and filling his MMA betting bankroll back up. Now obviously we never want to lose our MMA betting bankroll, but if you are just betting on MMA as a hobby and for some side income, then it should not be a major issue in your life if you lose your MMA betting bankroll.
Part 2 - http://www.mixedmartialarts.com/mma.cfm?go=forum.posts&thread=2132524
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