- Betpack /
- Betting Guides /
- Betting Psychology /
- Chasing Losses: The Psychological Trap Every Bettor Should Avoid
Maintaining a disciplined approach is crucial to the success of your sports bets. However, when things don't go as planned, some turn to chasing losses: the psychological trap every bettor should avoid, no matter how strong the impulse. Read on to discover why chasing losses in sports betting is considered a grave error in judgement and learn more about systematic methods that will work much better for you.
Chasing Losses in Sports Betting Explained
Gamblers chase losses when they try to get out of losing streaks by placing more bets, hoping they can recover their lost funds quickly. The idea is to recoup losses instantly with one or more winning bets.
However, the opposite usually happens. In other words, instead of recovering losses immediately, bettors chasing losing runs tend to go on a spending spiral where each bet increases their financial exposure and their losses accumulate.
That's why chasing losses in sports betting is often considered a strong indicator that a person may have developed a gambling addiction and should immediately change their wagering patterns and habits or seek support.
Examples of Chasing Losses in Sports Betting
Depending on the bettor and gambling style, chasing losses in sports betting can manifest itself in several ways. Below, we look at three examples of how the lack of a structured approach can lead players to chase losses and go down a path of even more damaging losing runs.
Increasing Bet Stakes
Bettors often try to chase losses by incrementally increasing bet stakes for each subsequent bet they place. That way, they try to recoup losses of previous bets by winning on subsequent ones. For instance, a bettor may bet on 2-way markets with even odds, such as point spread betting markets, and increase the bet size after losing wagers to be profitable once a winning bet comes. However, while strategies such as Martingale's approach, where gamblers double the size of the stake after each losing bet, may work for bettors with large budgets and well-versed in bankroll management, they can be disastrous for punters on a tight betting budget, as there are no guarantees that a winning bet will come before all the money is lost.
Betting on Riskier Options
Some down-on-their-luck bettors choose to bet on higher odds, hoping to get profits large enough to cover existing losses. However, since selections with higher odds are more difficult to get right, betting on riskier outcomes is more likely to result in extending the losing streak rather than breaking the vicious cycle of losses.
Abandoning the Preset Gambling Budget
Setting a betting budget is a prerequisite to a structured betting experience, as it allows you to only gamble with the money you can afford to lose. However, when losing runs stretch your budget to the limit, the temptation is high to abandon it and start chasing losses. The reasoning here usually is that you will be able to recoup the lost money, and once you do, you will regain control over your spending, staying within the confines of your budget from that point on. Unfortunately, this approach rarely works and usually leads to losses piling up.
How to Avoid Falling into the Trap of Chasing Losses
Sports bettors should do their best to circumvent the common pitfalls that may lead to chasing consecutive losses. This means adopting a rigorous and disciplined approach before signing up with trusted online bookmakers so as to minimise irrational decisions later on. Here's a breakdown of the steps you need to take to prevent loss chasing.
Step 1
Set a Budget and Adhere to It
Start by figuring out how much money you can afford to lose each month without those losses impacting your life outside gambling. That can be a good starting point to decide what your betting bankroll will be. Once you decide on it, you must adhere to the budget and never deviate and spend more than what's in it.
Step 2
Create a Betting Plan
Next, devise a plan where you will take into account factors such as the types of bets you place, the maximum amount you can use on a bet, and what happens when you win. For example, some people gamble only a set amount each month. Even if they win, they withdraw the extra windfall and only spend that predetermined amount instead of using winnings too.
Step 3
Monitor Results and Adjust
It is crucial to analyse whether your betting strategy is producing the desired results and adjust if necessary. For instance, if you notice that you have a strong loss aversion that prompts you to make rash and careless decisions, modify your betting plan so as to place more moderate bets, reducing the risk of losing streaks.
Step 4
Take a Break If Things Don't Go as Planned
If you notice that even with a betting budget set and a betting plan in place, you still cannot stay in control of your gambling habits, it is probably best to stop gambling for a while. During this period, you can confide to a trusted friend or family member and decide what to do next. Seeking professional treatment or advice should be considered too.
Common Mistakes that Lead to Chasing Losses in Sports Betting
The only way to enjoy betting on sports is to ensure you adhere to responsible gambling practices and are disciplined in your decision-making. However, some mistakes may creep in no matter how robust your safeguards are. To help you recognize these errors of judgement and not make them yourself, we list four common mistakes that may lead to financial overexposure.
Placing Impulse Bets
Many bettors fall for the trap of making impulsive decisions when on a losing run, such as placing new bets as soon as their existing ones have lost. They do this in an attempt to recover losses instantly. However, they fail to do the adequate analysis and research required for an educated bet with much higher chances of success. So, avoid impulse bets, as they will likely only result in more misery.
Trying to Fix Near Misses
A near miss is one of the worst things that can happen to a punter, particularly when the potential winnings are substantial. However, the impact of a near miss usually extends beyond the losing bet. For instance, losing a seven-leg parlay bet because of only one selection can make one feel they were on the verge of winning, encouraging the punter to place an even higher bet next time, chasing not only losses but pursuing dopamine hits too.
Falling for Confirmation Bias
Confirmation bias and chasing losses are closely linked to each other. This is most evident when an individual has a pronounced gambling disorder and has developed a bias that reinforces bad decisions. For instance, a bettor who has sometimes been on a long winning streak may think, based on positive past results, that his betting strategy is right even when losing. Similarly, a bettor with confirmation bias may dismiss losing runs as bad luck or blame external factors such as referees. All of these will likely lead to more losses.
Final Thoughts on Chasing Losses and How to Avoid Them
To summarise, chasing losses is one of the biggest threats to the success and sustainability of your betting experience. The only way to prevent loss-chasing is to be aware of the psychological motivators behind it and its potential consequences on your budget, betting strategies, and overall well-being. By understanding and recognizing the serious implications of such behaviour, you can be better prepared to curb the impulse to chase losses when and if they appear.
Frequently Asked Questions
What is the Psychology Behind Chasing Losses?
Loss chasing is motivated by a person's need to feel reward instead of pain. It is also driven by what is known as the gambler's fallacy when people irrationally feel that a win must be due soon.
Is It Possible to Win Consistently in Betting?
It must be said that winning consistently in betting is difficult to achieve, as the house edge of bookmakers gives them a slight advantage and the inherent variance of gambling makes matches unpredictable.
What is the Average Loss of a Sports Bettor?
It depends on the type of bettor, as casual punters spend much less than professionals. That said, casual betting enthusiasts may lose about €500 to €1,000 a year, while frequent bettors may lose several times more.
