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Money management is the key to making money (profit) from horse racing. Forget what anyone has said before about handicapping, form analysis, and stable history! It is all about Effective Money Management.

My name is Bryce Hitchen, and since 1993 when I became involved in the industry, I have been looking at many hundreds of systems that promote massive success in making profits from horse racing. Not one of them has stacked up to the promotional claims, and most have long since met their ultimate demise. There is one fundamental reason for this, and that is that not many of the systems on the market offer sound advice when it comes to how you leverage your operating capital to make a profit each and every day.

Let me quantify this statement in a way that nobody in the racing industry can refute. Even if you did nothing about studying form, or analyzing horses past ability and simply decided that your system was going to be nothing more than “following horse number 10″ in every race that you bet on, you would be successful some of the time! This is fact and indisputable. However, if your Money Management Strategy was simply to place $10 on every Horse number 10 that you bet on (for the win), you may or may not make money (profit) with your strategy. Let me show you what I mean.

Let’s say that you have 6 horse races today that you want to bet on, and you have allocated $60 to be able to bet $10 for the win on each horse number 10, in each of those races. This is what it could look like.

Bet 1 $10 – Loss

Bet 2 $10 – Loss

Bet 3 $10 – Loss

Bet 4 $10 – Win – and the horse pays $3.50 for the win – You are now $5 down on your outlay

Bet 5 $10 – Win – and the winner pays $2 for the win – you are now $5 up on your days outlay

Bet 6 $10 – Loss

So from the 6 races you have bet $10 each on, you have won in two of them, and lost in four races. Your total outlay for the day has been $60 and your income has been $55.00. Your end result is that you have lost $5 or almost 10% of your capital in one day.

Now with effective Money Management there are various ways that this same race day could have been a profit for you instead. Let’s look at one of those methods now;

If instead of the investment strategy above you had ONE rule added to your plan, and that rule would be “Stop when you are ahead”, your day would have been totally different. You would have in fact only invested up to the fifth race, and therefore only had an outlay of $50 for the day. Your total wins to that point would have been the same two horses, and the income would have been $55.00 again. Now you are UP $5 or 10% on your outlay. This is a totally different result in many ways.

1. Your Win rate is 40% (2 from 5) instead of 33% (2 from 6)

2. Your outlay is 17% less than the first strategy

3. Your profit is 10% of your investment capital

The one thing that would stop MOST people from applying the second strategy rather than the first is simple. It is called GREED and we all suffer from it from time to time. The dedication to your horse racing needs to be the same as any other form of business, and lets face it, if you are entering the world of racing simply to make money, then you could say that there is little difference between this and any other business.

There are of course other ways to change the same result as in example one above, to actually make a profit. In fact one such change would see you earning $200 profit, from exactly the same 6 races, but there would be a catch to this. You would have required more than $60 to see your day through. This is of course Target betting, whereby you accumulate your losses from one race to the next, and establish the bet size for each ‘next” race, based on the amount of those losses, and the dividend that the horse (number 10) is paying for the win.

This is something that will be explained in another article. The point here is that “Effective Money Management” is the fundamental key to making a profit from horse racing.

For more than 20 years the author has been involved in the horse racing industry. He has spent many years writing about the industry and developing systems and strategies to make money from horse racing all over the world.

Now based back in his home country living somewhere near the seaside, he has time to devote to helping others make money from a global horse racing industry. New tools have been developed that now make it possible for everyone to WIN EVERY RACE in every country, EVERY time.

You should check out this information at http://www.allwinnerspro.com/blog/

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