POKER BANKROLL MANAGEMENT: TIPS AND RULES FOR KEEPING YOUR FUNDS SAFE

Proper poker bankroll management is almost as important as your poker skill level. Yes, you’ve read that right. Keeping your poker bankroll in check is not only one of the cornerstones of responsible gaming, but it will also help you stick around longer in poker online cash games.

Whether you’re a newbie or a veteran with hundreds of thousands of hands played, proper poker bankroll management is a must if you are to avoid the risk of going bust. Poker is a form of entertainment for us all, and we’d never want to let it be the cause of financial trouble.

In this post, we’ll have a good look at the importance of poker bankroll management and even point out a good bankroll management strategy for you to adopt. If you aren’t yet a great cash-game player, you will be once you’re done reading this post!

Understanding the Basics of Poker Bankroll Management

Paying attention to your poker finances is just like keeping tabs on your shopping. Whether yours is a larger bankroll or a small one, making sure that you manage your poker bankroll effectively should be one of your top priorities; more than winning!

The basics of this crucial aspect of playing poker (or other online or live cash games) can be condensed into one short statement: managing your poker bankroll safeguards the money you cannot afford to lose.

Instead of betting more money than you can afford and putting your finances in peril, poker bankroll management makes sure that your playing time is as financially safe as possible.

The Importance of Setting a Bankroll Management Plan

Now that we’ve nailed down the basics of proper bankroll management, we’ll have a look at what makes this practice so important.

First off, no amount of money in the pot is worth going bankrupt for. A proper bankroll management plan helps mitigate the risk of going broke by setting limits on the amount of money you can lose in a single session or tournament.

In fact, poker bankroll management will help you extend your playing time and give you more opportunities to win in the long run. If you’re a professional poker player, or one who takes their performance very seriously, you’ll be glad to know that poker bankroll management will help your win rate if done well, since you’ll be safeguarding your chips better and perhaps even playing tighter ranges.

What’s more, better bankroll management will also help keep your emotions in check. Stop loss and win limits prevent you from making impulsive decisions based on short-term results and help you stay focused on making sound, strategic choices. No more getting carried away by a losing streak; professional poker players look beyond that — they have to if they want to conserve their poker stack.

Calculating Your Poker Bankroll and How Much to Allocate for Each Game

Although we can’t give you an exact number that you should keep in mind when establishing a poker bankroll, we can offer you a few guidelines to help you arrive at that conclusion on your own.

Firstly, you’ll have to evaluate your overall financial situation. Consider your income, expenses and any other financial obligations to determine the amount of money you can comfortably allocate to your poker bankroll without jeopardizing your financial stability.

Secondly, determine which and how many land-based or online poker games you intend on playing. Ensure that you allocate an appropriate portion of your bankroll for each game while maintaining a sufficient cushion for variance and downswing, including buy-ins. For cash games, a common rule of thumb is to have a buy-in of around 5% of your bankroll. For example, if your bankroll is €200, your buy-in for cash games should be around €10.

Finally but most importantly, the size of your poker bankroll should reflect your skill level, playing frequency, and risk tolerance. As a general guideline, it’s recommended to have a bankroll of at least 20-30 big blinds for cash games and 50-100 for poker tournaments.

Types of Poker Games and How It Affects Your Bankroll Management Strategy

Practicing proper money management depends on the type of poker cash game you’ll be playing. Furthermore, it depends on whether you’ll play tournaments or not, and what kind of tournaments, at that. Don’t worry; we’ll cover everything you need to know in this section!

The most obvious choice for beginners and casuals is cash games. In cash games, players buy chips and play with real money at a designated stake level. Poker bankroll management in cash games typically involves buying in for a certain number of big blinds. Since the chip values directly represent your (poker) money, your bankroll should be deep enough to handle the swings and variance inherent in the game. It’s generally recommended to have a bankroll of at least 20-30 buy-ins for the stake you are playing to handle the ups and downs effectively.

Next up, we have the choice of different poker variants, such as Texas Hold’em, Omaha, Stud, or mixed games, which can also impact your bankroll management strategy. Some variants may have higher variance than others, and it’s important to adjust your bankroll size and buy-in amounts accordingly.

Thirdly, we have tournaments, which have a fixed buy-in and offer the chance to win large prizes. Bankroll management in tournaments is slightly different from cash games. Due to the nature of tournaments, where there is a fixed entry fee and the potential for a significant return on investment, a different approach may be needed. It’s recommended to have a bankroll of at least 50-100 buy-ins for the average buy-in level you play in tournaments to handle the variance and maximise your chances of cashing in and making deep runs.

Finally, we have online versus live games. Bankroll management can also be influenced by whether you play online or live cash games. Online poker often allows for multi-tabling, which means you can play more hands simultaneously and experience higher variance. As a result, a larger bankroll may be necessary to manage the increased swings. Live poker, on the other hand, tends to have a slower pace, and the variance may be lower. However, live poker may have higher expenses, such as travel, accommodations, and tips, which should be factored into your bankroll management.

Tips for Managing Your Bankroll in Cash Games

Here’s what your poker bankroll management strategy should look like if you want to play poker cash games.

Nail down a good poker strategy

Focusing on preserving your bankroll can be done by making calculated and strategic decisions. Avoid unnecessarily risking large portions of your stack in marginal situations. Make sure that your decisions are only based on the hand that you’re dealt and not your bad luck in your previous hands.

Set a maximum buy-in

Determine a maximum percentage of your entire bankroll that you’re willing to invest in a single cash game session. As we’ve mentioned above, a common guideline is to keep it around 5% of your total bankroll. Don’t spend the entire balance of your online poker account on a single poker game!

Choose your poker game wisely

When choosing which poker game to play, stick to stakes that are appropriate for your bankroll size. Avoid playing at limits where the potential loss of a few hands could significantly impact your bankroll.

Gradually move up in stakes as your bankroll grows, but feel free to plateau if your win rate stays the same for a while. On the other hand, it may be necessary to drop down in stakes to protect your bankroll — there’s no shame in that!

Set stop-loss and win-limits

Choose a predetermined loss limit and profit target for each session. When you hit your loss limit, be ready to walk away to prevent further losses. Similarly, if you reach your profit target, consider cashing out and ending the session on a positive note.

Remember that when you end up having profitable games, it’s better to cash out instead of linger long enough to lose your winnings.

Tips for Managing Your Bankroll in Tournaments

Here’s what your poker bankroll management strategy should look like if you want to try some tournament poker.

Set aside a tournament budget

Tournament players must always set aside a tournament budget, which is different from a cash-game bankroll. We’ve covered why this is important in the above sections; it makes it easier to avoid spending more money than you can afford to lose.

Choose your tournaments well

Being selective in the tournaments you enter is extremely important. Take into account buy-ins (the average buy-in being 50-100 big blinds for tournaments), field size, and prize structure to find tournaments that offer good value and fit your poker bankroll management strategy.

In the following section, we’ll have a look at the different types of tournaments you could compete in.

Keep the higher variance in mind

Poker tournaments have a higher variance than regular poker games. Why? The combination of deeper stacks, no set structure and the dynamic nature of cash games contribute to larger swings in bankroll and higher variance in cash games compared to tournaments.

With this in mind, you should be ready to set aside a larger poker bankroll for tournaments (50-100 big blinds).

Alternate between smaller and larger buy-ins

Striking a balance between smaller and larger buy-in tournaments can prove to be beneficial to your overall poker bankroll. Participating in lower buy-in events allows you to build a bankroll, while occasional shots at higher buy-in tournaments can provide potential big wins.

Either way, it’s important to never commit too much in either buy-in size and always trust your objective poker ability.

Types of tournaments to consider with your bankroll

When on a budget, it’s important to consider poker tournament types that offer good value and fit within your financial constraints. Here’s a quick overview of the different tournaments that poker players can choose from.

Freeroll tournaments

As the name suggests, Freeroll tournaments are free to enter and provide an opportunity to win real money or free tournament tickets. If you want to try and build a poker bankroll faster without any initial investment, you should seriously try to play freerolls.

Micro/Low buy-in tournaments

If you’re a lower-stakes player but still want to try your hand at a tournament, consider this type. These tournaments typically have among the lowest stakes possible, and the prize pools obviously reflect that.

Having said that, they are a great way to gain experience and potentially build a bankroll faster.

Multi-table tournaments

Look for multi-table tournaments with reasonable buy-ins and well-structured levels. Tournaments with longer blind levels and a slower increase in blinds allow for more play and decision-making, giving you a better chance to utilise your skills and make the most of your investment.

Satellite tournaments

Satellites are tournaments where you can win a seat in a higher-value tournament instead of buying in directly. They often have lower buy-ins and offer a chance to win entry into more expensive events.

Playing satellites can be a cost-effective way to participate in higher-stakes tournaments, but only do so if you believe that you can compete well against great poker players.

Bankroll Management for Online Poker: Adjust to Virtual Tables

If you’re one of the poker players who has always played poker (and other casino games) at a land-based casino, you might think that you’ll need to revise certain things before heading to an online poker site.

This isn’t necessarily the case. If you’ve been practising good poker bankroll management while playing a land-based cash game, you should simply carry on those positive foundations to your online cash games. After all, managing your poker bankroll is as important at land-based casinos as it is at online poker sites.

Bankroll Management Mistakes to Avoid

Being one of the top online poker sites in the world, we at HotSlots couldn’t avoid expanding on our already comprehensive list of poker mistakes to avoid. In this section, we’ll have a look at some poker bankroll management mistakes that you should avoid at all costs.

1. Not having a sufficient poker bankroll: One of the biggest mistakes is not having a big enough bankroll to support the stakes you’re playing. If yours is a smaller bankroll, you’ll be at a higher risk of going broke during patches of bad luck. Make sure that your bankroll is adequately sized based on the stakes you play and the variance associated with the game.
2. Chasing losses: Going on a losing streak is a common occurrence in poker, but it’s important not to chase losses by playing at higher stakes or for longer hours. This can lead to impulsive decisions and poor bankroll management. Stick to your planned bankroll and game selection strategy, and avoid trying to recover losses in a hurry.
3. Not keeping your poker bankroll separate from other funds: Do not mix your personal funds with your poker bankroll. Consider the funds that you deposit at an online poker site completely independent of your other funds. Do not withdraw your personal funds and go above and beyond your limits.
4. Lacking discipline: Discipline is key to successful poker bankroll management. Avoid making impulsive decisions when playing poker, such as playing above your bankroll, taking shots at the highest stakes, or playing when you’re on tilt. Develop a disciplined approach to your poker play, including setting session time limits and adhering to your bankroll management plan.
5. Moving up in stakes too quickly: It’s tempting to move up in stakes when you experience a few successful sessions or a small run of good luck. However, moving up in stakes prematurely can lead to significant losses if you’re not sufficiently skilled or if your bankroll is not prepared for the higher stakes. Always ensure that you have a solid foundation and a robust bankroll before moving up. Feel free to move down in stakes if you don’t feel ready to tackle tougher opposition.
6. Taking poker too seriously: Unless you’re a professional poker player, you should treat poker as a hobby and avoid getting caught up too much. What happens at your poker table shouldn’t influence your daily habit and it shouldn’t contribute to mood swings. Forget about racking up profitable games all the time. Simply playing poker for fun can be more rewarding!
7. Not adjusting your bankroll for variance: Poker involves variance, which means there will be swings in your bankroll. Failing to account for variance and having a bankroll that cannot withstand downswings can lead to busting your bankroll. Make sure you have a sufficient cushion to absorb potential losses and mitigate the impact of variance.

Adjusting Your Bankroll Management Strategy as You Progress

Whether you’re a casual or veteran poker player, you’ll definitely want to improve the way you play poker. In fact, almost all poker players have the goal of improving and progressing through the ranks. With that should come an adjustment to your poker bankroll management.

Your first step would be to assess your poker skill level. As you improve as a poker player, your skill level may (and will hopefully) increase, allowing you to play at higher stakes with a higher win rate. Consider evaluating your current skill level and reassessing the stakes you are playing. If you have been consistently beating the current stakes and feel comfortable moving up, you can consider adjusting your bankroll requirements for the new stakes. Keep in mind that high stakes require a large bankroll.

Moving up to higher stakes usually comes with increased variance. To account for this, it’s advisable to have a larger bankroll when playing at higher stakes. This larger bankroll provides a buffer to handle the increased volatility associated with higher stakes.

As you gain more experience and become more comfortable with bankroll management, you might consider adjusting your risk tolerance. If you are willing to take on slightly higher risk, you can allocate a smaller portion of your bankroll to each session or tournament, allowing for more aggressive play. However, it’s important to strike a balance and not expose yourself to excessive risk that could lead to a significant dip in your win rate.

As you progress in your poker journey, your goals may change; it could be increasing your hourly win rate or achieving specific milestones. Take the time to review and update your goals periodically. Align your poker bankroll management strategy with your revised goals to ensure that your bankroll supports your aspirations.

Tracking your results and monitoring your bankroll’s performance is essential. Regularly review your win rates, return on investment, and overall profitability. If you notice significant deviations from your expectations or if your bankroll is not growing as anticipated, it may be time to reevaluate your bankroll management strategy and make necessary adjustments.