FantasyPros has put together a glossary of Daily Fantasy Sports (DFS) terms for readers to reference. More and more players are taking part in DFS contests. We’re providing the glossary so that you can easily reference terms and strategies as you get started playing DFS. Below we’ll take a look at bankroll management.
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One of the biggest issues in daily fantasy sports (and likely the least favorite to talk about) is that of bankroll management. There seems to be a myth that all of the highly-ranked players started in daily fantasy sports with a huge bank roll. While that may be the case for a select few, I am willing to bet that if you asked, most would tell you that they started with a relatively small amount. This subject seems to be ignored or swept under the rug, but there are plenty of misconceptions to discuss, especially with this being the single most important thing that can either derail your future playing the game or put you on the path to success.
If you haven’t figured it out yet, there is no ‘silver bullet’ when it comes to success in daily fantasy sports. In fact, what works for some does not translate for others. The one constant in success or failure is bankroll management. It sounds simple on the surface, but it is amazing how we manage to cloud this concept. What is more stressful to you as a player, playing with $200 that you deposited or playing with the $200 you won last week? While it might be tempting to treat those winnings with a bit less care as it is “house money,” you have to be able to maintain discipline or it will inevitably go away as fast as it came into your account.
A great place to start in bankroll management is figuring out how much you’re willing to risk at any given time based on your overall bankroll. Some players swear by putting only ten percent in play at once. Others bump that to 20 or 25 percent. Quite frankly, I’m not here to tell you what you can afford to risk. However, I can tell you that daily fantasy sports are inherently volatile on a day to day basis, which introduces risk. I know we all want to nail that big seven-figure prize, but the odds are stacked against you. By limiting your exposure on a day-to-day basis, you will be able to ride along with the peaks and valleys that come with the territory. Over the course of the season, you should be profiting, rather than trying to make it all happen in a day or week.
Why is this important? By sustaining a profit over the long haul, you can then afford to dip into those larger tournaments. I will note that some players seem to be better at tournament play. This is also important in determining your success. If you are risk averse, stick to 50/50 games or head-to-head matches. If you can stomach the cold streaks that hit us all in chase of the bigger payouts associated with tournaments, then know your limits.
Hot and cold streaks happen in real sports all the time and thus they trickle down to us fantasy sports players. If you’re on a hot streak, maintaining your discipline in only playing your set amount each and every day will allow you to become profitable over the course of a season as you will certainly encounter a rough patch. Keeping track of your results during both hot and cold streaks is something that is paramount to your success. If you have not formulated a way to track your results, I strongly urge you to do so.
While the discussions on bankroll management are not fun, you will quickly learn just how important managing your bankroll is. This is just the tip of the iceberg in terms of strategies to properly manage your bankroll, but this should be a good start in paving your path to becoming a successful daily fantasy sports player.
Adam Sutton is a correspondent at FantasyPros. To read more from Adam, follow him @DraftStars_Adam. You can find more of Adam’s work at DraftStars.net.