Bankroll Management

Bankroll management is a vital skill that all poker players should master, no matter what level or poker game you play. Here's a look at what 'bankroll' actually means.

• The term 'bankroll' refers to the amount of money you set aside exclusively to play poker with - for example the money you have online at PokerStars.

• No matter how big this amount may be, there is always a risk that you'll lose it all and go bust. To keep this risk as low as possible, good bankroll management is required.

Basic Rules of Bankroll Management

1. Never play for more money than you can afford to lose.

This is the most important rule. It's always possible to lose money at poker, even if you play well. Therefore you should never risk an amount of money that could get you into financial trouble away from the poker table, especially if you are experiencing a downswing.
 

2. Be aware of your goals in poker.

There are three groups of players.  It is very important that you are aware of your goals and select the right level:

• Recreational Players. These players are playing mainly for fun and have other sources of income besides poker. If they lose their bankroll they can just go ahead and fund it with fresh money from their regular source of income.
• Serious Players. These players are good and profitable players but they don't depend on the money they make with poker. Because they have other sources of income, it is not the end of the world if they lose their poker bankroll, but it will hurt.
• Professional Players. These players depend on poker as their source of income. They can't afford to lose all their bankroll as this means they would lose their job. Therefore they must employ the strictest bankroll management techniques.

3. Do not play higher than your bankroll permits.

The chart that follows later on this page shows you bankroll requirements for No Limit Hold'em cash games. For SNGs, tournaments and Limit Hold'em these are very good rules of thumb to follow. If you are a recreational player don't risk more than 10% of your bankroll at once. So if you have a bankroll of  $100 don't risk more than $10 at once. For serious and professional players the bankroll restrictions are tougher.
 
SNGs: You should have at least 30 buy-ins in order to play if you are a serious player. A professional player will need 100 buy-ins. Let's suppose you have a $600 bankroll. It's OK to play $20 SNGs if you are a serious player. A professional would need $2,000 in his bankroll in order to play the $20 SNGs.

Tournaments offer huge prizes but also huge swings. You should have at least 50 buy-ins in your bankroll in order to play them as a serious player. A professional will need 200 buy-ins. It's probably best not to play tournaments exclusively. It's safer to also play SNGs or cash games.

Limit Hold'em: Having 300 Big Bets in your account is pretty safe. Example: In order to play $3 / $6 you need a bankroll of at least 300 x $6 = $1,800 to play safely.

4. Stay in your comfort zone by only playing limits that don't intimidate you or put your entire bankroll as risk.

If you start playing at a limit that you feel is too high, you should stop - even if you can afford to keep playing. It's easy to get nervous in these situations, which can lead to you no longer enjoying the game and making poor decisions. This should be avoided at all costs, since a competent poker player only plays within the limits in which they feel comfortable.

Conclusion

Even if you play with perfect strategy, there are times when you may experience a losing streak. On the other hand, it is also quite natural to have periods of feeling like you can't lose even if you try! But if you stick to the rules above, you will be able to survive these downswings and upswings, by properly managing your bankroll. Stay confident, make the right plays, and you'll enjoy the game and make profits in the long run.