Bankroll Management
One of the most important aspects of poker that a player must learn in order to be successful is proper bankroll management. It does not matter how skillful, talented or cunning a player you may be, the fact of the matter is, without proper bankroll management, you would still eventually go broke.
Why is that? Well, because when you are playing poker, you are playing with odds. Sometimes the odds will fall your way while other times they will not; you cannot control what you are dealt and it is quite difficult, if not almost impossible, to win unless you are making hands. And let's not forget that you are sure to misplay a hand or face a bad beat at some point in your poker career.
So, a bankroll that is large enough in comparison to the games that you are playing should be in place so that in the event that you do lose your stack, your bankroll will offset the losses so that you can come back the next day to the same game and still play.
By now, you are probably wondering what size bankroll you should have in place for the type of games you wish to play. And you are in luck because we have provided all of those guidelines for you below.
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Poker Bankroll Guidelines
Cash Games
A general rule of thumb for bankroll management when playing cash games is to either have 20 to 25 buy-ins for the stakes you wish to play or 300 to 500 big blinds. If you are using the 20 to 25 buy in rule, you are giving yourself more of a cushion than if you were using the 300 to 500 big blind rule. For example, if you were playing $.02/$.05 where the maximum buy in is $5 you would want to have at least $100 or $125 before buying in using the 20 to 25 rule and around $50 using the 500 big blind rule. It is also important to note that you should be buying in for the full amount allowed and should be basing your guidelines off that.
Now, as we mentioned this is just a 'general' guide to cash games. A player should also consider what game they are playing and how good they are at it. For example, you are going to face much bigger variances playing no limit hold'em then you will playing fixed limit stud. That is simply because a player can only stand to lose so much in stud on any given hand where a player can lose his or her stack in a single hand in hold'em. So naturally, a player would want to have more of a bankroll for hold'em and/or no limit games then they would for stud or any other fixed limit poker game. And of course, if you are new or just are not any good at game you're playing, then the bigger cushion you can give yourself the better.
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Sit n Go's/Tournaments
Tournaments and sit n go's are a different beast because the bigger the field, the further you should expect to go between cashes. This of course results in bigger variances thus creating the need for a larger bankroll.
The rule of thumb for sit n go's and tournaments is to have at least 50 buy-ins for the stakes you wish to play with 100 being more preferred. So for example, if a player wanted to play $5 sit n go's they should plan to have at least $250 in their bankroll, if not closer to $500. Many sites will say that 40 buy ins is enough but to be quite honest, 50 buy ins is pretty close to inadequate in my opinion for games any higher than $1.50. For the $3.40 games, 50 buy ins is 'ok' if you are a winning player, but even then, I think closer to 75 buy ins would be more ideal. And obviously the higher the stakes or the bigger the field, the more of a cushion you should have so that you can continue playing.
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Moving Down | Moving Up in Stakes
Now when it comes to bankroll management, there is probably nothing more important than realizing when it is time to move up and most importantly, when it is time to move down in stakes.
Too often players do not move down in stakes when their bankroll tells them that they should and the players end up suffering because of it. To put this into perspective, not moving down in stakes when you have taken a large hit to your bankroll is no different than playing at too high of stakes; but it has the same disastrous results which is you going broke.
So, aside from having guidelines to what games you should play, there should also be guidelines for where your bankroll needs to be for you to move down. For example, if you require a minimum of 25 buy ins for the stakes you wish to play, then you can set a rule for 15 to 20 before having to move down. If the game you want to buy into is $2 and your bankroll has less than $30 in it, you should then figure on moving down in stakes until you can build your bankroll to over $50 again. There is no shame in moving down, as all of the greatest players out there have had to do this.
Of course, the best part to bankroll management is moving up. However, many players tend to move up too fast or figure once they move up there is no reason to move down. So just like moving down in stakes, players should have guidelines as to where their bankroll needs to be before moving up. Generally, this will be about 25 buy ins of course, but since these are new stakes filled with new players, nuances and tendencies, players should plan on having a little bit more breathing room before 'taking a shot' at the next level. This way they can take their shot and try to pick up on the trends of the newer stakes without having to worry about taking a small beating and having to immediately move down.
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Other Expenses
Another thing that is important for players to consider is if they will be playing for a living or just maybe playing part time. This is because a player who plays for a living will need a much more substantial bankroll than what we have listed here because there will be money withdrawn every month for various bills, groceries and payments. Also, if this were a full time job then it would be a good idea to have a savings in addition to your bankroll in case you face a very large downswing or an emergency of some kind.
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Managing Your Bankroll in Poker
In short, a player can have all the strategies, forums and training guides at their disposal but it won't mean squat if they cannot play within their means. Variance, bad beats and poor plays happen to all of us so a player should take the steps necessary to protect themselves from these situations; and the first step to doing that is by protecting their bankroll.
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