What are we trying to do when we focus on “money management?” In simple words, we’re trying to “manage our money” – or “manage our risk.” Our goal is to preserve our capital or hard-earned money. In the world of finance, many professionals use the phrase “risk management” and “money management” interchangeably. After all, without a good betting system, we won’t make any money, right? The same thing can be said about “money management.” That is, if you don’t pay attention to money management, you might not be able to take that “next” step to becoming a “sports investor.” Good money management will reduce the chances of extreme losses and help turn this “hobby” into a legitimate “investment.” Most of us focus on betting systems and strategies that will be profitable.
