On Bankroll Management

Bankroll management is probably a key discipline that is highly mentioned but probably the least followed by most aspiring poker players. As new players, we all dream of playing higher stakes and start making a decent clip of change. Yet without proper bankroll management, the journey into higher stakes is often cut short prematurely. The maxim of "You can't go broke with proper bankroll management" is the holy grail in poker. It is probably one of the strongest reasons that I'm still able to play the games I'm playing and making a decent hourly rate.

This article shall briefly describe some management principles in relation to today's cash game. It is common to hear the standard 20x max buyin rule for bankroll management. Eg. to play 100nl comfortably, you should have 20 x 100 = 2000 bucks to start with. In my opinion, a 20x rule is considered a very aggressive approach to your bankroll management. It is probably decent enough to rise through microstakes all the way to 50nl or 100nl, but beyond that, considering the increase in competency and skills in todays game, 20x buyin is just not enough. I personally play with a 100x buyin comfort zone at 100nl. Definitely over-rolled and ready to go to 200nl with a 50x buyin cushion, but I feel I'm still not ready for that yet. Thus in brief, 20x is almost the lowest limit you can practice, but nonetheless, the more the better.

Next, a good bankroll management will always having the consideration of moving down in stakes when you are not doing so well. My 20x buyin drops to 15x buyin at 100nl, I should drop to 50nl and rebuild from there. The key issue here is having the discipline to drop a level and rebuild from there. Most newer players do the opposite instead, playing at higher levels in a bid to make back the money. This is a slippery slope situation. Not before long, they realise their bankroll is gone, and thats it, no more poker. My point is, as long as you still have a bankroll, there will always be an opportunity for you to make your money back (if you play well) as the games are always available, like wise for the fishes and poor players. Manage your discipline, manage your ego, it will do well in your own bankroll management.

Now, we move on to moving up in stakes. The first thing to consider is obviously your bankroll buy-in rule. Do you have the required number of max buyins for you to play in the higher stakes? Secondly and more importantly, is whether you are a real winner at the stakes you are currently playing. You can play for 10k hands at 100nl and win 4000 dollars, and you think you are ready for the next level given that your bankroll satisfy the minimum 20x buyin rule. Yet, many take the plunge at higher levels because they are not really winning and beating the games at their current stakes. 10k hands is not a good measure of your true winrate. People can have and will have breakeven stretches, downswings, poor play, tilt etc etc. Log a decent amount of hands, I'd say 40-50k hands and take it from there. By then, if you are a true winner even at a marginal winrate of 3PTBB/100, you would have been decently rolled for the next level, and would have a better appreciation of where you stand. Get pokertracker to track your results. For aspiring players, it is criminal if you don't use it, or plan to use it.

Another good strategy is to practice frequent cashing out. E.g, for every 5x buyin you won at the end of the month, cash 1x buyin out. Or to cash out your rakeback earned. I think this is one overlooked aspect for newer players because they are constantly wanting to grow their bankroll to move up. But by cashing out, it provides you with a safety net. Psychologically, this has helped me alot because I have cashed out more than my initial investment. My current bankroll is considered a "freeroll" for me to play poker, allowing me not to play with "scared money" and "scared poker" and hence make better decisions. When you are worrying things like "if i go all-in now, my bankroll will suffer if I lose" or "if i make this hero call, im gonna be stuck with 5 buyins left for my stake" during a poker session, then something is seriously wrong. Your decision making is hampered by your bankroll, and that is not helpful to your game at all.

Lastly, to put it all in perspective, have a solid bankroll plan written out, have it printed out in bold and pasted infront of your computer. E.g,

Current Bankroll| Current Stake| Bankroll for next level| Drop down when
500 25nl 1000 350
1000 50nl 2000 750
2000 100nl 4000 1500
4000 200nl 8000 3000

Say you are playing 25nl currently and aiming to hit 50nl. You would want to have a 1000 bankroll to start with. With a good move down plan if you lose, you move back to 25nl when your bankroll is 750. The simple strategy shows why you will never go broke if you practice sound bankroll management. With these tips in mind, I hope newer players can be successful in their quest in their poker endeavors.