Money management Plan simply reiterates to a standard investment formula that you have devised to make a profit from the horse racing industry, and betting on horses. This is one key element to making money long term, and in an industry that is not really affected by recession and other market fluctuations, horse racing provides a great way to make money if you know what you are doing and you can comfortably overtake the stigma of being a racing fan.
Many sellers of information, who are selling things like racing systems, money systems, and other methods of making money from horse racing, are not doing you any favors. They are after the sale and once that is achieved you will probably never hear from them again. That is unless they have another product to sell you.
These days we even have systems that allow us to bet on a race "that a horse will not win" and many people have made good money out of this type of bet. The reason is because it is much easier to find a losing horse within a race than it is to find a winner. Just like it is much easier to find a horse that will finish in a "place" (1st, 2nd, or 3rd) than it is to find a winner. The art of finding a winner is one part of the entire investment process, and the other vital ingredient is the money management plan.
A plan enables you to see how much money you are starting with, what type of bet you are going to be placing and following, and it also enables you to calculate how long you can sustain a run of losses. All of these things are important and need to be accommodated prior to launching into any investment program using horse racing as your vehicle. In a sense horse racing is no different to the stock market as in both instances you are gambling on the fact that one horse or company will outperform the others, but you would have heard the saying "never place all your eggs in one basket" and This is also true of the horse racing industry.
There is only ONE sure guarantee with any horse race, and that is that in every event that is actually run, "There will be a winner" (Sometimes more as in the case of a dead heat) This winner is what you want to be able to predict and this is where the selection system or method is vital. The system you use to detect the winner, needs to be simple, effective and viable, and it needs to return at least 30% winners for you to be able to make any real money ongoing. Not many systems deliver this over all courses, conditions, and race types.
What about a selection method that delivered EVERY winner ?! Now that would be awesome would not it! Never again having to worry about calculating form variables, and studying the race guide, would be a blessing in itself.