Bankroll Management Strategies
No matter what factors you consider when choosing the size of bankroll that's right for you, understand the following fundamental; it's is much better to have a robust bankroll than a small one. Typically, a more experienced player requires a smaller bankroll than an inexperienced player; an inexperienced player is more likely to be effected by
bad beats and less equipped to analyse their own play through
keeping poker records, resulting in greater potential for negative swings in their bankroll.
The
types of poker game you play has an influence on how big your bankroll should be, this is typically determined by the number of betting rounds the game uses and the type of betting structure. A game with less betting rounds requires a smaller bankroll, so
five card draw requires a smaller bankroll than
7 card stud, a fixed limit game does'nt need as big a bankroll as a no limit game of the same poker variant, so fixed limit Hold'em needs a smaller amount than no limit Hold'em.
It is also important to look at the reason you play poker. If you only play poker for fun at the weekend your bankroll means less to you than if you relied on it to live, your bankroll does'nt form part of your income and therefore does'nt need to be as robust as the bankroll for a professional player. If you are a poker professional, having a sizeable bankroll is preferable for a number of reasons; you are more likely to experience long losing streaks where the cards and percentages turn against you, your bankroll must be big enough to withdraw a wage every month in order to pay bills and maintain your standard of living, psychologically you are far less likely to feel pressure if you have plenty of reserves to fall back on if you experience a number of losing sessions.
A professional player must make more use of his bankroll than a recreational player, not just at the tables but off the tables too. Rather than leaving large chunks of money scattered across many online poker accounts, it is advisable to withdraw and invest part of your bankroll so that it can earn some interest for you. Consider this, by investing a percentage of your bankroll into other areas, you are helping to offset the negative effect of the rake that you pay. Give your bankroll the greatest potential to increase whilst still maintaining a reasonable level of liquidity. As a professional poker player lives off of their bankroll, it is more important for them to start with a significantly larger bankroll than a recreational player would.
Your
style of poker play also plays a major role in deciding how big your bankroll should be; if you're a loose and passive player your bankroll will fluctuate considerably more than a tight and solid players', you must understand which type of player you are before you can understand which size bankroll is right for you. Also, the type of opponents you play is a factor; usually the players at the lower table limits are more inexperienced and will suckout on you more frequently, due to a larger number of players seeing every flop. The worse your opponents play, the bigger you bankroll should be. Infact, I'd suggest that 300 times the big bet is only just big enough for a very good player at the looser lower limit tables and insufficient for a player who is still learning the game.
There are differences in opinion regarding stop losses and stop wins, some players swear by them while others question their effectiveness. Some argue that stop losses reduce your ability to recoup when the you are playing well but the cards are going against you, while others believe that they provide the perfect opportunity to take a break and analyse the reasons for the losing session. A similar situation arises with stop wins; some players maintain it's best to quit while you're ahead thereby guaranteeing at least a few profitable sessions while others argue that it limits the positive effect a good session can have; there must be a reason for the profitable session, whether it's just that you're playing well on that day or you're at a table full of poor opponents, by stopping you are giving up the opportunity to profit from whatever factor is having a positive effect on your bankroll.
When moving up a table limit, add enough to your bankroll amount to cover you for 2-3 losing sessions at the new level, this way you are guaranteed at least 2-3 sessions of vital experience before having to drop back down to a smaller table limit if unsuccessful. You will also reduce the likelyhood of playing scared poker in fear of having to drop down a level because there is a buffer of money between you and the drop.
There are differing opinions over dropping down a table limit. The general consencus is that once your bankroll has decreased below a certain amount, it is correct to drop down a table limit until you have recouped your losses and have sufficient bankroll to play at the higher level once again. Another school of thought says this is counterintuitive; by dropping down a limit you restrict your ability to earn because the stakes are smaller; this only rings true though, if you are certain of your ability to play profitable poker at the higher level, if there is any doubt over this it's probably best just to drop down a table limit while you further your poker education.
Never ever put your whole bankroll at risk! Your bankroll should be used as an emotional tool to support your emotional well being at the table. If your whole bankroll is at risk, you are more likely to play defensive and scared poker with the risk of losing everything in the forefront of your mind. Risking a maximum of 20% in a day is a much more sensible strategy.
In
shorthanded games with 6 players or less you must have a bigger bankroll than normal because the variance is higher in those games compared to a full
10 handed play table.
