Staking Plans - Why They're Essential
The very first thing you need to do as a horse betting investor is establish a betting "bank". This bank has to remain inviolate: don’t dip into it to buy a pack of cigarettes or a round of beers for your mates. And don't top it up with more of your own money.
Having respect for your bank is probably the most important aspect that separates the "investor" from the "gambler".
To start the bank should be of such a size that if you were to lose all of it, it wouldn't feel as if it were the end of the world. This allows you to go about working your system with the minimum of emotion. Once you've doubled or tripled your bank you may also want to take out the initial amount so that you are then operating solely with "won money".
Once you have a bank you need to treat it with respect and to do this you need to implement a staking plan. We implement staking plans so that when we experience an inevitable losing sequence we do not lose all of our capital.
Regardless of the quality of our system for picking horses we will experience a series of consecutive losses from time to time. If you are prepared for these before they happen you can ride them out and wait for the series of consecutive winners to re-appear.
Below I outline a basic staking plan that can allow you to withstand up to 30 straight losses and still survive.
Absorption Staking Plan
As discussed, the first step is to establish a betting bank. Your betting bank has to be self-sustaining and once established you cannot add any more of your 'own' money to it. Now, use 5% of the bank to bet for a win and 5% for a place/show for all your betting from now on. Reinvest all your profits back into the bank and let it absorb the losses as well.
So whether your bank increases or decreases in size, your bets remain in proportion all the time - 5% for a win and 5% for a place/show
Example:
Betting Bank $100: Win bet $5 Place Bet $5
OR
Betting Bank $75: Win bet $3.75 Place bet $3.75 (Round them off to nearest whole number if need be)
How You Can Sustain 30 Straight Losses
With a robust racing system you shouldn’t get 9 straight losses in a row - let alone 30! However the "absorption" staking plan alolows you use to withstand up to 30 straight losses without totally breaking the bank. A betting bank of $100 will be $4.18 after the 30th loss - not completely wiped out. The greatest thing about this staking plan is that it magically minimizes the impact of losses while capitalizing tremendously on winnings. Try it and see for yourself!
