This section is in the basics because it is essential you follow it. It is a must read section and must be followed for successful play.
Many players believe if there game is strong enough, then that is it, nothing else matters, well they are wrong. Mainly due to variance, this can be combated with effective bankroll management. However, It is sufficed to say you can lose before you have sat down to play a hand. That is why it is essential you follow guidelines.
Your main aim at a poker table is to maximise your amount of profit whilst keeping your risk as low as possible.
There are some truly basic rules of bankroll management that you should always keep to, regardless of your game. These are defined by the three variations of the poker game, these are, Cash Games (ring games), Sit N Go tournaments (SNG’s), and Multi Table Tournaments (MTT’s).
Cash games
For no limit cash games you should have at least 20 times the full buyin. Now this may sound extravagant but it is essential for effective game play. If your bankroll is $1000, then your limit should be 0.25/0.50 (max buy in $50, 20 X 50 = $1000). You will find that maybe only 10% of cash game players put this into effect, therefore, they leave themselves open to terrible variance, and this should allow you to maximise your profits.
Playing limit games is totally different. This is because the maximum amount you can bet is much smaller than a no limit game, which in itself limits variance. So once again, using 0.25/0.50 as an example you should have 300 big bets in your poker bankroll, therefore your bankroll only needs to be $150.
Sit N Go’s
Compared to cash games, Sit N Go’s have less of a swing, for example, if you lose your entire stack in a SNG, you are only liable to your original stake. Therefore you should look to have 40 – 50 buy in’s, therefore, if you have a $1000 bankroll you should be playing stakes around the $ 20 - $25 mark.
For the two games above, these rules should only be applied for 9 to 10 seated tables. The rules for 6 handed or lower are different, if you play 6 handed you should look to increase the amount by around 30%, 4 handed 60%, and new cash game players should avoid heads up all together.
Multi Table Tournaments
For effective bankroll management in multi table tournaments, you should be laying down no more than 2 – 5% of your total bankroll per tournament. The reason why the amount is extremely small is because in a multi table tournament, your chances of cashing are seriously affected by variance in MTT’s. Therefore, if your bankroll is $1000, you should be playing no more than a $50 tournament, but preferably around the $25 - $40, especially if you are a new player.
These suggestions are widely accepted as common guidelines for new players; however, they need to be seriously revised, depending on what player you want to become.
If your intention is to make a living out of poker, then your amounts must be broadened to accommodate your daily expenses. It is almost impossible to try and make a living out of poker with no funds behind you. If you are thinking about it, and only have a small amount of funds behind you, try following the above guidelines and see if you can build a bankroll.
If you do decide to stop working make sure you have money that goes further than your poker bankroll. Also, remember at all times that your general livelihood is more important. Your bills should come first, and not poker. This is another reason why bankroll management is so crucial.
If you do not follow bankroll management it is not hard to see why you will fail as a poker player. For example, if you poker bankroll is $1000 and you play 5 $200 Sit N Go’s, and get 5 bad beats, that is your whole bankroll gone inside 5 games, you cannot risk your bankroll on 5 tournaments.
You should not be afraid to move down levels, dont be ashamed to do this, it does not make you less of a player; in fact it shows you have confidence in yourself to build your bankroll back up. If your bankroll does not accommodate your current level, you should move instantly. The same goes for if you are playing bellow yourself, but this way you should factor in player ability, because the higher level you go, the harder the players become.
Remember a crucial fact; effective bankroll management is not going to turn your game around if you are a loser. If you are a losing player, then it is likely that it is your play that you should evaluate.
You will (at points) find it hard to stay in your limits, you may see a tournament that you want to play in that is way over your limit, you must resist the temptation. If you are strong enough player, you must think that it will be a matter of time before long you will be able to play at a higher level. Even if your thinking about playing a satellite that is within your stakes, if you cash a satellite there is a very strong case to why you should not play it, this is because you are still defying your buy in limits. Even if you qualify to the tournament through a satellite you are still technically paying the entry fee as you can unregister, and take the money, so why not use this money towards your bankroll?
On the other hand, many players have made their livings through satellite grinding. Satellite grinding gives you the chance to win much more than your initial buy in as you have to play a minimum of two tournaments. Many professional players started as satellite grinders, yes there is more than an element of luck involved but the rewards can be colossal.
To become a successful poker player, you are going to need to invest more than just a few dollars. Some players do get VERY lucky and cash very big with just a few dollars, but this is not the norm. It is more than likely if you make a small deposit, you will just be making it again in a very short time. If you cannot afford to make a ‘decent’ deposit, then save up, and try not jumping in at the deep end.
