Imagine going on a hot streak in casino craps and winning thousands of dollars in just 20 minutes. Suddenly everybody near the table is your best friend and they’re all cheering you on. Not coincidentally, your bets start growing larger and larger with each win as the hot streak takes over your mind. But like most casino craps players, you don’t know when to quit so you keep riding this streak until it fizzles out – leaving you with less cash than when you started the casino session.
Unfortunately, this scenario is all too common in both land-based and online gambling because people don’t know how to properly manage their money. More specifically, they don’t know how to set win and loss limits when gambling. But what many people don’t realize is that simply setting a win and loss limit before you enter the casino can save you hundreds of dollars each session….it might even earn you some cash. Here’s an in-depth look at how to set these limits.
Setting Win Limits
It’s never easy to quit gambling when you are beating the house at their own game. But when you look at things logically, the whole point of gambling is to eventually win some cash. And the only way to leave with profits is by picking up your chips and walking away at some point during the session. So when does this point happen? Well, it happens as soon as you hit the predetermined win limit.
For instance, if you walk into a casino with $300 and have a goal of doubling this amount, you would either leave after hitting $600, or overshoot the win limit by $50 and play with the excess winnings. Assuming you play with the excess $50, you only play with that money and avoid touching the $600 on the side.
Obviously this is just an example and your win limit could differ drastically based on a few factors. For one thing, you might play with a lot less or a lot more than the previously mentioned $300. You also could be happy with simply earning a 50% return on the starting bankroll; remember, the lower the win limit is, the more likely it is that you’ll take home profits.
To illustrate this, let’s say that you start a casino blackjack session with $200 and are looking for a 50% rate of return. This is a very obtainable goal since you merely need to hit $300 to walk away with the 50% ROI. However, if you plan on playing after hitting the win limit, you would need to shoot for $350 so you’d be able to set the $300 aside and play with the extra $50. When setting win limits, always look at the starting casino session bankroll as well as how much you hope to make.
Setting a Loss Limit
In addition to setting a win limit, you should also have a loss limit to avoid losing too much money on a bad night. And even though you can trim the house edge down to around 1% in many casino games, there will be plenty of times when you hit a cold streak and start losing money fast.
To set up an example of a loss limit, let’s assume that you plan on starting a blackjack session with $300 and don’t want to lose more than 50% of this cash; when you are down $150, you would leave the casino. Unfortunately, this doesn’t give you a lot of time at the tables (even if you’re playing $5 blackjack), but it does conserve your bankroll for future sessions.
Some gamblers might even consider setting their loss limit at $200 in the aforementioned example to maximize time spent at the tables. Going further, setting a higher loss limit also gives you a better chance to absorb the losing streaks that affect every gambler. In short, the higher your starting session bankroll and loss limit is, the more chance you’ll have of surviving variance in casino games.
Sticking to Win/Loss Limits
While setting up a win/loss limit is a great idea in theory, there are plenty of gamblers who won’t have the will power to stick with these limits. Not coincidentally, these are the same people who will never make any money or come close to breaking even in gambling.
And it’s definitely hard to stick with win/loss limits because there is so much temptation to keep gambling no matter which way Lady Luck is sending the money. But the better you are able to stick with win and loss limits over the long run, the more successful and happy you will be at the end of a casino session.