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Author: Max Redd www.ReddRacing.co.uk

I recently re-mortgaged the house, sold all my shares and drained his savings account, children draining the trust fund …. and put it all on the favorite of 2:30 in Newmarket.

Of course not! That would have been madness, and dicing with financial suicide. Putting absolutely everything you have on a horse is an example of mismanagement of money – albeit an extreme example, but got your attention right?

However, too often the average punter is guilty of mismanagement of money. In a much smaller scale of course, but it is not surprising that the average punter loses money betting on horse races? Often my members ask me "how much" should be placed on each bet, "I have a staking system", or "how soon can I quit my job and only bet on horses? .

A lot of people seem to pay lip service to the management of bank-roll bets, but never stops amaze me how many people are still acting so irresponsibly with their money when it comes to betting. I think the perennial losing gambler is a bit like being overweight uncle established on 1 January with the best intentions of losing his beer belly. He has a salad years, including a visit to the gym. But more often than not come February is back to their comfortable eating habits and the weight continues to pile on.

It is often the same for the average punter – who has developed the bad habits that, over time, contributed to a steady flow of money from your bank account and into the coffers of their local brokers. To become a winning bettor must change their ways.

Let's examine some of the bad habits that contribute to a betting bank balance unhealthy:

1. Value Betting poor

Imagine going to Tescos and pick up a can of baked beans on the platform. At Exit 17 years Irregular explores the tin, and says that "four seventy-eight pounds sixteen pence please, sir. You hand him your debit card, your PIN number and walk out of the store. Ridiculous? Of course it is that – you do not pay whatever price the store decided to charge. So why do so many punters take whatever price is offered on a horse they fancy?

The answer is simple – they have no idea what a good price for the horse should be. Everyone is familiar with a can of beans, we have an idea how much it's worth, and we a decision of what will and will not pay. But when it comes to backing horses, probably the only limit of most bettors will place themselves never to back odds-on.

This self-imposed a state is itself a fallacy – if you offered me 4 / 5 odds-on on a horse with a 4 / 9 odds-on chances of winning, I would bite your arm!

The odds of any given horse are a reflection of the weight of money behind it, not necessarily reflect the true probability of the winning horse. Let me give an example: Top trainer Sir Michael Stoute is running a filly valuable for the first time in the inaugural race at York. Champion jockey Kieron Fallon is in the saddle. The Racing Post has 7 experts break this horse to win. There are 11 runners in the race. Price This horse is 11/10 – this is a good bet? Do you really think that a filly running in public for the first time without any point to have a realistic chance of almost 50% to win the race?

This is a good example of when a horse of the price is lower than the real chance of winning. NOT good value.

The only way to profit from betting on horse racing in the long term, it is always back horses at prices too high compared to their chances of win. This is known as getting the "value" in their bets. You are paying less for more than their true value. It's things you learn on the first day of GCSE its economy. Similarly, you will benefit long term if it was always priced horses to lose too short compared to their chances of winning.

The lesson to be learned is only ever bet when you have the value of your hand. Otherwise, let the horse race. I will continue my examination of the money undermining other betting habits in future articles, but that's all for today.

About the author: Max Red has been making a living betting on races horse for over 10 years. There is a Red Racing betting advisory service which offers members a FREE trial and 60 days money guarantee repayment of benefits. Find more information at target = "_blank" href = "http://www.reddracing.co.uk"> http://www.reddracing.co.uk

About the Author:

About the author: Max Redd has been making a living betting on horse racing for over 10 years. He runs the Redd Racing betting advisory service which offers members a FREE trial and a 60-day money-back profit guarantee. Find out more at http://www.reddracing.co.uk

Article Source: ArticlesBase.com – Betting on Horse Racing ~ Sensible Money Management (part 1)