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In a nutshell, you bet money when the amount you stand to win is larger than your odds of winning. So if you're a 3:1 underdog and you have to bet $1 to stay in a $5 pot, it's a good bet. If the pot is only $2 then it's not.
Needless to say determining what your odds of winning are is an inexact science (it depends not only on your cards and the cards on the board, but also on what cards you think the other players are likely to have and how many players are left to act).
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