To be a winner in sports betting, a good management of your capital is essential to be positive in the long term.
It means to maximize profits and minimize losses to get the best of your trades.
Risk management is already the cornerstone of the edifice of your trading system.
You must know the risks of each position, possible movements and therefore the potential losses in bad scenario.
At first, define a maximum acceptable loss of 5% to 10% or less of your capital.
Knowing that the market may be more volatile and we must be careful and not expose too much capital to avoid the risk of exceeding the threshold of 5% -10% loss.
Conversely, in a market that can only move a few ticks in the worst case, you can engage an important part of your bank.
In a second step, when you’ve already experienced your strategies with the basic principle outlined above, you can increase the risk from the time the reward is also growing more.
To image the term “risk-reward”, we can say that this is a form of return on investment.
Examples ratio “risk reward”
Ratio 4: 5 (€ 4 for potential loss of potential gain € 5)
6:10 ratio (for 6 € for potential loss of potential gain € 10) more interesting …
8:10 ratio (8 € for potential loss of € 10 potential gain) … no interest