Poker Bankroll Management: Living To Fight Another Day
Every professional poker player learns how to manage their bankroll. If they don’t, they’ll go broke. A lot of poker neophytes think bankroll management involves looking at their stack of chips and thinking to themselves, “that should be enough.”
It’s not. But, it’s a great way to go bust.
Today, we’re going to explain the basics of poker bankroll management. We’ll describe how to manage your stack in cash games (both limit and no limit) and SNG tournaments. As you’ll see, drawing a line in the sand and sticking to it no matter where it leads is a critical piece of the process. For a full treatment on the subject, read our article on bankroll management.
Before we get started, take a peek at this picture to see what’s possible…
Cash Game Bankroll Management
The size of your bankroll should determine the stakes you’re playing. Obviously, if you have $50 in your account, you don’t want to jump onto a $5/$10 table. You’re not playing online roulette. That said, you need to establish your metrics and stick to them.
A good rule of thumb for limit cash games is to have at least 300 times the big blind. For example, if your bankroll is $100, you can comfortably get into a $.10/$.20 game. On the other hand, a $.25/$.50 table would stretch your chip stack too thin. For those stakes, you should have a minimum of $150 (or, 300 x $.50).
No-limit games require a larger bankroll because blood can flow quickly. It’s not uncommon to see players lose their entire stack in one hand (and look confused after it happens). So, your bankroll needs to be bigger in order to handle the crashes. For NL games, plan to have at least 20 times the maximum buy-in. Assuming the buy-in is equal to 100 big blinds, playing a $.05/$.10 game would require $200.
Those stakes may sound small, but remember, no-limit games can get messy fast.
SNG Tournament Bankroll Management
A lot of beginning poker players jump into sit-and-go tournaments thinking they’re less volatile than cash games. They’re not. SNGs actually have more variance than NL games. That means your bankroll should be even larger.
Experienced players often suggest having a minimum of 25 times the max buy-in. Personally, we’d suggest bumping it to 40, especially if you’re just starting out. For example, if you’re getting into a $5 + $0.50 SNG, you should have $200. That will give you a good buffer to withstand a couple of blowouts on your way past the bubble.
Moving Down Or Going Broke
So far, we’ve focused on how to choose your stakes based on the size of your bankroll. But, what if your stack suffers a brutal beating? You need to be open to moving down to lower stakes until you can rebuild. We know it doesn’t feel right, but if you stay at your current stake level, you’ll go broke in a hurry.
For limit games, move down once your bankroll hits 200 times the big blind. For no-limit games, 15 times the max buy-in should be your signal.
One last note about choosing your stakes: your playing style matters. If you’re a tight player who rarely goes into the flop, you can probably get away with a smaller bankroll. After all, a tighter play means smaller swings and less variance. Of course, if you’re a gunslinger raising every bet, you’ll want a bigger buffer. You should probably review our poker tips, too.
That’s bankroll management in a nutshell. To get some experience, visit Poker Stars and claim your 100% match up to $50. It’s one of the easiest bonuses to clear. Plus, starting with $100 ($50 deposit plus your $50 bonus) is a great way to learn how to manage your bankroll on the cheap.
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