5. Money Management
One of the most talked about and least understood concepts in gambling is money management. Nearly every article, pamphlet or book written about gambling will attempt to deal with money management.
However, most experts don't even agree that money management works. Some express disdain about a concept that can't be quantified by mathematical expressions. Others believe that money management is the only way to come out ahead.
I fall into the second camp. I know that if you want to win consistently then you have to manage your gambling money very carefully.
The essential goal behind money management is to safeguard your gambling bankroll. I have expanded this concept to include setting win goals for each gambling session and using loss limits to minimize the damage caused by occasional losses. I even record the results of every gambling game and keep a careful record of my wins and losses.
If this sounds like a lot of trouble to go through, let me assure you that it isn't. Once you start using my approach to roulette, every aspect of the system will make sense to you. You will know exactly when to "lock up" a profit for each game and what to do when you encounter a losing game.
Once you start thinking along these lines, you will rapidly develop the habits to perceive your LIVE roulette sessions as a new business venture that you can and will be successful in.
Your Gambling Bankroll
Another area that the experts don't agree on is the amount of money needed for a comfortable gambling bankroll. Once you agree to the concept that you need money set aside for gambling that is separate from the money needed to buy groceries, make the car payment or pay the rent, then you can begin to refine just what constitutes an adequate bankroll.
With the Maximum Advantage Roulette Strategy, I let the system determine the cash needs. By having a reliable system, we can determine every piece of information needed to precisely define the amount of bankroll you need for each level of play.
Not surprisingly, if you want to consistently play using green $25 chips, you need a larger bankroll that a player using red $5 chips.
The grain of knowledge you need to gain at this point is that both your level of betting and the performance of the system will determine your bankroll. Once the system is explained and numerous examples are offered, this will become crystal clear to you.
Like many other situations involving money, money management often has more to do with how you budget your bankroll than simply the size of your bets. In our approach to gambling, we will set both win goals and loss limits. These are not some arbitrary amounts that are constantly subject to change dependent on your whims. The size of your bankroll will determine the amount of money you use for any given game of roulette. The amount used for a game, or your "buy-in," will determine the bets you use, the size of your bets, your loss limit for that game and your win goal as well.
For instance, if you are traveling to a casino destination for a two-day stay with a $2,000 bankroll, you can divide it into two $1,000 sessions. You could further divide each session bankroll into four $250 game bankrolls.
You might go a step further. You might decide to limit your losses to 50% of your buy-in. If you buy in for $250, then that game would be over whenever you are down by $125.
Likewise, you might set a win goal of $100 per game. As soon as you hit this target amount, you could quit playing or at least become more conservative so that you don't lose your winnings back to the LIVE casino.
One way to lock up profits is to physically remove them from play. Let's say you just won $100 on a $250 buy-in. You can take this $350 and put it away. The casino's safe deposit box is a convenient place to keep winnings. Some players even bring envelopes for this purpose. When they reach their win goal, they slip the cash into an envelope and mail it home.
If you can't afford a $2,000 bankroll, you can use a similar formula geared to the size of your gambling bankroll.
Also, please remember that when you win you are not playing with the "casino's money." It is only the casino's money when it is sitting in the chip rack on the roulette table. Once the money reaches your side of the table, it is yours, not the casino's. If you continue to think of it as the casino's money there is a good chance it will make a round trip and end up back on the casino's side of the table.
If you hit your loss limit, you take a walk. There's no point in setting loss limits unless you have the guts to stick to them.
Walking away from a loss takes a lot of discipline. Most people won't do it if they still have money on the table. They will wait until every chip is gone, and even then, many will reach for more money rather than accepting a loss and walking away. Whatever you do, leave the table following a loss. You can sit in the lounge. Or take a walk around the casino. I find that doing something physical works well for me. A brisk 30-minute walk is highly recommended.
The one thing you don’t want to do after a loss is reach for more money and continue playing.
Maximize Your Winnings
The most important thing to do when playing roulette is to remember that your main goal is to win, to come out ahead. One way to do this is to minimize your losses, by leaving the table after a loss. When you learn the Maximum Advantage Roulette Strategy, you will also learn very specific adjustments to make in your play after any loss, Many gamblers become addicted to an occasional winning streak. Sometimes the biggest losing gamblers are gamblers who have sometimes had the largest wins. The reason?
They become addicted to the idea of the winning streak.
Therefore, when they have a little winning streak, they don't want to quit, because they remember how good they felt when they won a lot of money. They will stay too long at the table until the winning streak becomes a losing streak and they end up with a loss.
One of my former gambling buddies fell into this category. He would never quit when he was ahead, because he never wanted to end a winning streak. However, he would never quit when he was behind either because he didn't like the negative feelings he had walking away a loser. Consequently, there was only one thing that would make him stop gambling. He had to lose every bit of his bankroll, plus one or two credit card cash advances.
Only when he was flat broke would he quit gambling. Safeguarding your winnings should be your primary concern. There is no such thing as a "small win." Every win is worth keeping.
I am a great a believer as anyone that you should not quit in the middle of a hot streak. The Maximum Advantage Roulette Strategy incorporates this concept into its rules. While setting a win goal is part of the strategy, you never have to quit immediately after hitting the target win amount. Instead, what you can do is modify your behavior. What I like to do is to continue to play but set myself a limit on play. For example, let's say your target win is $500. You can continue to play after hitting this goal, but with another trigger to pull you off with your winnings intact when the trend ends.
Here's one way to do this. After hitting your win goal, reduce the size of your wagers and continue to play. However, if you lose two bets in a row, quit. This is a very simple rule. If you are in a prolonged winning streak you will seldom lose more than one bet before resuming the winning streak. Whenever you have two consecutive losing bets consider this a reliable signal that your winning streak is over. When it happens, calmly quit betting, and as soon as the dealer has a moment, ask him to "color you up," and prepare for departure.
Your behavior following a nice win should be similar to what you do after a loss. Take a break, go for a walk, have a snack or go to your room and take a nap. The key thing is to remove yourself from the table at least long enough so that you don't let any feelings of euphoria overcome your safeguards about losing.
Any winnings should be considered a return on your investment (ROI). The ROI principle is further explained in the next section.
The Return on Investment (ROI) Concept
I like to think of returns made from roulette in terms of a return on my investment. The ROI concept is simply a way of relating the amount of money earned to the amount of money at risk. If you invest $1,000 in a bank, leave it there for a year and make $30 in interest, your ROI would be 3 percent. When gambling, it is useful to think of your ROI as the return you earn on the money at risk.
At its most basic level, I like to relate the amount of bankroll used in a game as the amount of my investment. Win goals, loss limits and ROI are all based on the amount of your buy-in. For some gamblers, "buy-in" is not equal to their investment in a game. They may start out giving the dealer $200 to convert to chips, lose those chips, give the dealer another $200 and after losing this amount as well disgustingly throw in a final $100 in currency to convert to chips. Here the original buy-in of $200 does not equal the total amount risked, which is $500.
I don't recommend that you play this way. Generally, your original buy-in should be the total amount you are willing to put at risk in this gambling contest.
With Maximum Advantage Roulette, many other factors are tied to the amount used in a game, including the size of your wagers, the spread between your smallest and largest wagers, your loss limit, your win goal and your ROI for a game.
In general, any ROI greater than 20% of your game bankroll is an acceptable win. With our system, your target win will usually be larger than this, but nonetheless, I want you to consider 20% of your game bankroll a respectable win. Furthermore, I want you to be willing to pick up your chips and walk away with a win as small as 20% of your game bankroll.
If you only buy in for $200, then a 20% game ROI would be equal to $40. Before you protest that this is too small a win, please remember that the Maximum Advantage Roulette concept will let you make this level of winnings in a very short time period, usually less than half an hour. If you want to win more, the recommended procedure is to buy in for a larger amount.
Don't worry that I am going to require you to gamble with a higher amount than you can afford. My preferred tactic is to always start small and to increase your bankroll through casino winnings.
Keep the idea of ROI in mind. Not only is the concept a handy way to compute minimum acceptable winnings, it is also useful because it will get you in the habit of thinking of LIVE gambling as a form of higher risk investing or speculation, much like "playing the stock market."
However, as we shall see, when you use the Maximum Advantage Roulette Strategy, your risk may be a lot lower than investing in stocks.