How to maintain a risk-reward ratio when betting
World of online sports betting and gambling, though it may seem simple at first, is absolutely huge. If you’re looking to be successful there, you can’t hope to simply get by luck. You have to learn what the most successful people do in this business and try to emulate it as closely as possible.
The risk-reward ratio is one of the most crucially-important metrics for beginners and experienced people when making bets. Understanding it well can make or break your gaming strategy, and hugely boot up your performance and win ratio, and not being aware of it can lead you on the path of huge losses.
What exactly is the risk-reward ratio, how does it work, and why should you care?
The risk-to-Reward ratio is not a complicated term to conceptualize, as you can easily infer its meaning directly from its name. It helps you determine what your possible payout is for each and every dollar that you risk.
As an example, if your ratio is 1:4, that would mean that you’re risking $1 for a possible win of $4. Understanding the concept is fairly simple. However, fully internalizing and applying it in real life, is much harder.
When it comes to Risk-to-Reward, people use a term called “a stop”, which depicts the number on the leftmost side of when numerically depicting a ratio (I.E in 2:1, 2 would be the stop). It is most people’s belief, that the tighter the stop, the better the Risk-to-Reward ratio, meaning that 10:1 would be a better stop than 2:1, as with the first case you’d be risking $10 to win $100, and with the second case, you’d be risking $10 to win $20. This is an overly simplified way of explaining it but is good for beginners to understand the concept easier.
What you can do today to keep a good Risk-Reward ratio
While there are no specific ways that can 100% guarantee a high Risk-Reward ratio all the time, there are some steps that you can take to ensure that you’re at least not shooting yourself in the foot.
The “cheapest” and easiest way to increase your Risk-Reward ratio is to insure your risks by using your sportsbook or casino’s promotions. A promotion, in a way, is free insurance for your bets without any investment. According to Nigel Davis, PR representative of Playamo online sportsbook and casino, free promotional offers are quoted as one of the many key factors that give new players the confidence to start with gaming. During the Playamo free spins no deposit bonus promotion and those similar to it, players get a chance to play with more confidence, as less of their money is under the danger of being lost. The same is the case with sports betting. Most people don’t know, but a lot of sportsbook websites offer some amazing bonuses. Therefore, the next time you’re making bets on your favorite sports website, make sure to look around and see if there are any available bonuses that you can use to mitigate possible losses, or maybe even win more!
It’s a common belief, that in order to keep your Risk/Reward ratio high, you need to sacrifice your winning chance, as if you want to get larger wins than usual, you’ll have to take more risks and step up more. This, in theory, sounds logical and is sometimes the case, there are exceptions, and usually, the players who are more experienced and know the ins-and-outs of the game can navigate around this rule more easily, and don’t have to always be constrained by it.
Being very well-versed in your game and having more knowledge puts you way ahead than most people who aren’t patient enough to study the subject game or sport. It also allows you to truly see when odds are predicted right or not, as your own expertise will be the guiding point, as opposed to just going with what everybody else thinks.
If you’re looking to make the biggest wins in this industry, you need to adopt the mindset of constantly learning and increasing your skills, so you can always improve upon your strategy and increase your win ratio.
