The average punter loose his money to the bookmaker largely as a result of poor money management. Bookmakers can from time to time present very good prices, especially after the bookmaker has had a few good weeks (often weeks with surprise results, many favorites losing, etc), and punters' accounts are running empty. Bookmakers know that even if they present a few good odds (I mean really good odds), average punters will most probably deposit more money, and most certainly win this time, thereby increasing their bookmaker account.

This is fine by the bookie, because he knows that the customer most likely will have an empty account in a few weeks time due to his poor money management anyway. The bookmaker will see this loss as a short term investment, because the average punter will feel aroused by his winnings, he's getting eager, and start to bet more often and often with higher stakes. Inevitably, the bookie's getting his money back, with a solid interest on top.

Professional punters know that bookmakers operate this way, (presenting good prices every now and then, get money circulation, let the customer feel he's winning, thus generating more cash flow, and eventually more money in the bookmaker coffers), and therefore they wait patiently for the next round with extra good prices offered.
The professional punter do not get carried away after a few wins. He knows what to expect, and acts thereafter. The professional punter is not necessarily better to predict an events outcome than other punters , but he's definitively much better with money management

Martingale

Martingale is probably the best known system for money management. Originally designed for use in casinos, this system has nothing to do with picking objects. Martingale is a system which helps you control your stakes. With Martingale, you can be a lousy bettor, but still win money. Please note that Martingale is a system with very high risk of going broke.

The principle of the Martingale system is as follows:

If you lose, you double your stakes, and if you win, you start all over on your starting stake. This means that you eventually will be ensured a profit. Follow this example: You've found a game with odds 2.0 for home victory. You bet 100€, but you lose, as the game ends in a draw. Next time you bet 200€ on a game with odds 2.0. If you lose again, you must bet 400€ on a game with odds=2.0. If you win this time, you've placed a total stake of 100+200+400 =700€, and you've won 100€ for your efforts. The 100€ payoff is equal to what you would've won on your first bet.

Row of numbers

The German word for this system is "Die Abstreich metode". This is also a system well known from casinos, and has a lot in common with Martingale (recovering from losses by increasing stakes). But Row of numbers is not as tough as Martingale though. While Martingale can quickly give you your stakes back including a profit, Row of numbers does not repay your losses that quick, but it does not lead to big stakes either (which Martingale does).

Row of numbers gives you more flexibility compared to Martingale because you can adjust your stakes in a more suitable way. The disadvantage is that this system requires more effort from you, as you have to make a row of numbers on a piece of paper and add numbers when you lose, and remove numbers when you win. You need to have better control with your betting, so to say.

Let's have a look at the system:

First decide how much you want to win. E.g. 1000 €. Then you have to figure out how long it's going to take to reach your goal. This is the tricky part, because when you win you must remove the first and last number in the row, but when you lose you must add a number to the row.
As a result of this, you must try to decide an average probability for a win, given a fixed odds. If you want to play on games with an average odds of 2.0, set your probability to 40% (or thereabouts). It's better to underestimate rather than overestimate your abilities. If you overestimate your ability, you will have to make up for it by increasing your stakes, and increasing the stakes can easily become rather unpleasant if you hit a losing streak.
If we imagine the 1000€ split into 20 x 50€ wins, we can calculate how long you will have to bet in order to get a 1000€ total win, given the 40% chance of winning with odds=2.0 (a 50% chance means you're betting even with the bookmaker).
With a 40% chance of predicting the 2.0 object correctly, you will lose 60% of the picks. Thus you lose 50% more often than you win (60/40). In the case of winning, you get to remove 2 numbers on the list (the first and last number). When you lose you must add a number at the end of the list. If we draw this row of numbers, it would look like this:

 

50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50

 

Determining your first stake:

As explained above, the first and last number will be removed if you win. 50+50=100. In order to win 100€, you must use a stake which will give you 100€ in net profit. If the odds given is 2.0, you'll have to bet 100€. If the odds is 1.50 you must bet 200€. If the odds is 1.75 you must bet 133,33€. The method of determining the stake is:

 

Net winning -------------- odds - 1

The stakes for your forthcoming bets can be calculated in the same way. If the first bet is 125€ at odds 1.8, and you lose this bet, you must add 125 at the end of the list. The next bet will then be the first and last number in the row, which now is 50+125, divided by (odds-1).

 

50 + 125 -------------- odds - 1

 

You must of course substitute "odds" with the actual odds offered on your object.
If you win, you must remove the first and last number in the row, and then start fresh with 50+50/(odds-1) again.

Even though this system does not produce such a high level of progression as Martingale, it's still a rather dangerous system. If you hit a losing streak, things can easily get out of hand. Therefore, your pre-betting calculations is of highest importance. Before starting with this kind of system, be sure to run a test period with fake stakes for a month or so. You will learn the system, and see the importance of modesty when determining your own predicting ability.