Bankroll Management

Bankroll Management Introduction

To become a successful poker player you need a much bigger perspective than that of the single cash game session. You need to ask yourself:

►How do I get maximum value for my time?
►How do I get there from where I am now?

The answers to these questions constitute your financial plan. Self evidently, higher limits mean bigger pots and bigger pots means more value for your time. Another less obvious advantage with higher limits is better margins due to the fact that the rake makes up a smaller percentage of the pot. However, you need to learn how to walk before you can run. Beginning at low limits and moving up one step at a time is the only way to prepare yourself for the challenges posed by higher limits.

This brings us to the next step; how to realize the plan. No matter what limits you are playing the risk of losing is always present and no skill in the world can prevent losses from happening. By playing correctly you will win more than you lose but there is no guarantee that your wins and losses are evenly distributed over time. Even professional players have bad streaks. In order to cope with bad streaks you need a generous poker budget.  A budget that will give you the margins you need to reach higher limits and bigger pots. This budget is known as the bankroll. To make any long term profit from poker you must manage your bankroll properly. You can play every single hand correctly and still lose all your money if you don't have a proper bankroll management.

Limit Cash Game Bankroll Management

The limit cash game requires a considerable bankroll because of its long term scope. The general consensus is that this bankroll should correspond to 300 big bets; i.e. the fixed bet on turn and river. This bankroll is big enough to cushion your losses and small enough to be fully utilized. You don't want your losses to eat up a big portion of your bankroll but you don't want a big portion of your bankroll sitting around collecting dust either. 300 big bets give you the perfect balance.

The limit cash game strategy we are about to teach you will only work properly on low limit fullring tables with a minimum of six opponents. The lowest limits available in most poker rooms are $0.10/0.20 and the corresponding bankroll for them is $60.

We have already established that proper bankroll management will help you reach higher limits and bigger pots. However, it is not realistic with a continuous ascension to higher limits. Occasionally you will have to move down a limit to cope with bad streaks. This brings us to the final bankroll management rule, namely when to move up or down a limit:

Please observe that it makes no difference to your bankroll management if you play at one or several tables at the same time. Playing for one hour at two tables is the same thing as playing for two hours at one table as far as your bankroll management is concerned. Playing on multiple tables does not require a bigger bankroll, it just gives you more value for your time. It goes without saying that all the tables you play at must match the limit allowed by your bankroll.

Below is the bankroll management road map for the low limits:

We will round this chapter off with a proverb that you should carry with you at all times:

Play only the limits your bankroll can handle and use only a bankroll that you can handle.