Bankroll Management

Proper Bankroll Management is one of the most important points when playing poker.  Essentially, bankroll management means playing at the correct limits to avoid losing your entire bankroll when the inevitable bad run of luck happens.  Even the most skilled player will go through a period of receiving poor cards.  This run can last several hands and sometimes through several games.

The key to proper bankroll management is to have a bankroll large enough to withstand these bad runs.  There are many different factors to take into account regarding your bankroll.  These factors include:

• Bankroll should be large enough to play at chosen limits for an extended length of time
   

• Bankroll should be large enough to absorb large swings, especially downward swings
   
• Shorthanded and Heads up poker games lead to larger swings – your bankroll should be large enough to absorb these larger swings, especially downward swings
   
• Play at correct limits for your bankroll (and skill level)
   
• Your bankroll should consist only of money you can afford to lose
   
• Consider dropping down in limits if bankroll drops significantly

Your bankroll needs to be large enough to play at the limits that you have chosen for an extended length of time.  If you are playing in a $1/$2 limit Holdem game, I recommend that your bankroll be 300 times the big bet – 300 x $2 = $600

Over an extended period of time you are going to experience times when you get a bad run of cards and your bankroll must be large enough to ride these times out.  If your bankroll is not large enough to withstand these tough times, than you should drop down a limit.  In the scenario above, if you dropped down to a $.50/$1 limit game you would only need a bankroll of $300 which is a significant reduction from $600.

So why do I recommend 300 big bets for a limit game?  Well after you ride out the unlucky streak, you still want a bankroll large enough that you can play your hands aggressively.  No poker player wants to be limited in how they play a hand because they don’t have enough chips.

When you are playing in Shorthanded games (3-6 players) or Heads-Up against an opponent, your bankroll can suffer even larger more dramatic swings.  In most cases, a bankroll of 300 times the big bet will not be enough.  I recommend at least 500 to 600 times the big bet.  If that large of a bankroll is too much for you then either avoid playing in these types of poker games or play in them at a lower limit level.

In addition to having a bankroll large enough to play in the $2/$4 limit that you would like to play at, your skill level also has to match the game.  You are going to be up against better opponents in a $2/$4 game than you would be in a $.50/$1 or $1/$2 game of Holdem. While you might have a large enough bankroll for the higher limits, if you don’t have the skill to be at that limit you will lose your bankroll very quickly.

The absolute best thing you can do is play at a limit that suits not just your bankroll but your skill level.  Play at those limits steadily for at least 2-3 months and when and only when you are consistently winning can you think about moving up in limits.  When you move up you should move up because you are a consistent winner and your bankroll has grown because you have won money not because you have deposited more money.  Move up one level at a time in limits and make sure you stay at that level until you are a consistent winner.

If you are not winning consistently but rather losing and your bankroll is shrinking, move down a level and work on bringing your bankroll and your poker game back up to a level that is appropriate for a higher level game.

Always play with money that you can afford to lose.  If you can only start out with a $50 or $100 deposit to an online poker room than play at the $.10/$.20 or $.25/$.50 limits.  The majority of players, especially those starting out don’t begin by depositing thousands of dollars.  Also, the majority of players are just playing because they enjoy playing and not because they are pros.

We have talked only about limit Holdem poker games when it comes to bankroll management but what about no-limit/pot-limit and tournament play?

If you like playing no-limit or pot-limit Holdem I recommend that your bankroll be 20 times the maximum buy-in at the table.  For example, say you are going to play in a $.50/$1 no-limit game.  When you go to be seated the maximum buy-in is $100.  Your bankroll should be $2000 (20 times $100).

If you enjoy playing in tournaments I recommend that your bankroll be 40 times the buy-in level of the tournament structure.  For example, say that you like to play in a sit n go whose structure is $5 + $.50 your bankroll should be $220 ($5.50 x 40 = $220).

Bankroll management is a key component to playing poker.  Play within the limits of both your bankroll and your skill level to help maximize your enjoyment of online poker.

Add to that studying and implementing the different strategies on our website along with practicing your game and you will see increases in both your skill level, limits, and your bankroll.