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The fact is that with a large enough bank you see the bigger picture and look on things week by week or month by month, whereas if you set your bank too small or do not get the ratio right between the size of your bank and the level of your stakes, suddenly every bet seems important and any losses seem to be massive blows to you. This is very dangerous in betting as in the event of a losing bet you can go on "tilt", similar to poker when you lose a big hand, you stop making rational decisions and start to "chase your losses" by either betting more on your next selection or even worse placing a total "gamble" bet on something you have not thoroughly researched.