Many people believe online poker is one of the most rewarding games out there.
However, it can also be the cruellest of games. A great player can make all the right moves and still lose. That's because the one thing no-one can control is their luck.
While poker is a game of skill, luck is important. In the long-term, this luck (or variance as it is often referred to) will even out and the best players will win. Over the short-term, results are dictated a lot more by variance.
This means you should give yourself a big enough bankroll to absorb any downswings.
What is a bankroll?
Your poker bankroll is the money you have set aside for playing poker. This bankroll should never be money that you can’t afford to lose.
If you do play with ‘sacred money’, you will inevitably make mistakes – and losing could potentially have a catastrophic effect on your life.
If you’re playing purely for fun and are not bothered whether you win or lose, then bankroll management isn’t necessary. (Although it’s still useful. If you don’t manage a bankroll, you may lose more money than you realise.)
If you are interested in making money from online poker and building your roll, then bankroll management is essential.
Risk of ruin
Risk of ruin is another way of explaining the possibility of losing your entire bankroll. No matter how big your bankroll is, there will always be some risk of ruin.
You have to decide how much risk to take and manage your bankroll accordingly. What does going broke mean to you?
If you play for fun and a little extra cash then losing your bankroll won’t be disastrous. You can re-deposit more cash at a later date if necessary.
If you play for a living and depend on your bankroll for your livelihood, then your risk of ruin must be as small as possible.
Managing your bankroll well
How do you keep your risk of ruin small?
It’s simple: the larger your bankroll, the smaller your risk of ruin.
The other variable you need to factor in is your skill level. A big winner will have fewer and smaller downswings than a slightly profitable player.
You need to take both these things into account when deciding how to manage your bankroll.
How much do you need?
There should always be a minimum level of bankroll management that you are willing to follow. How much you need depends on which games you play:
- Cash games have the least variance, so require the smallest bankroll.
- Sit and go tournaments (SNGs) have more variance than cash games, so you'll need a bigger bankroll.
- Multi-table tournaments (MTTs) have even more variance than SNGs and consequently you'll need the biggest bankroll for these games.
If you are serious about building a bankroll then the following chart shows the recommended minimum levels for your bankroll.
|
Game Type |
No Limit Cash Game |
Limit Cash Game |
Sit and Go Tournaments (SNGs) |
Multi-table Tournaments (MTTs) |
|
Minimum Bankroll Requirement |
20 maximum buy-ins |
300 Big Bets |
30 buy-ins |
50 buy-ins |
|
Example |
For games with a maximum buy-in of $10, you should have $200 |
For $0.25/$0.50 games, you should have $150 |
For $5 SNGs, you should have $150 |
For $5 MTTs, you should have $250 |
These minimums are based on the needs of the average recreational player. The risk of ruin for a profitable player is fairly small if these recommendations are followed.
If you are more serious and hope to make an income from online poker then your requirements should be higher to reduce your risk of ruin.
What stakes should I play?
The stakes you play should be dictated mainly by the size of your bankroll and your skill level. If you’re not sure where your skill level lies, then there is no shame in starting at the bottom.
Many a professional player has started at the very bottom and built their bankroll up from meagre beginnings.
Moving up/moving down
Let's move on to the stage where you've managed to build your bankroll to the amount needed to move up to the next level.
If you think you’ve got the skills to match your bankroll, then maybe it’s time to take a shot. Be honest with yourself. Be aware that the players you will be facing will be more skilled than you’re used to.
Most importantly, if it doesn’t go well, you must be prepared to drop back down to your previous level. Any time your bankroll drops below your minimum requirements, then you should be moving down to rebuild.
Final thoughts
It’s important to remember that if you lose every time, bankroll management will get you nowhere. Also no matter how good you are, you will suffer downswings.
If, however, you balance your stakes with your bankroll and skill level, you’ll find success won’t be far away.
Next up, we're going to look at more strategy tips in Don't let the big fish push you around.
