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As was discussed in our section on poker discipline, bankroll managment is a key component of long term poker success.  The subject is sufficiently detailed and complex, however that a separate article was needed to give it the attention it merits.

 

First, let me point out that there are several lines of thought regarding bankroll management.  The one I describe here is the one that makes it statistically unlikely that you will go bust if you are a winning poker player.  Note that I never mentioned that it was impossible, just statistically unlikely.  About 1 in every 1,000 winning poker players who use the bankroll management techniques described here will still go bust

  
 if they play long enough.  That's not too bad when you consider that 100% of losing poker players will eventually go bust if they play long enough.

 

Your bankroll determines the maximum stakes you should play.  You can always be more conservative, and by so-doing you further decrease the chance that you'll go bust.  The stakes you can safely play are also impacted by the form of poker you choose to play.  I will explain the relationship of bankroll to the various styles of poker by example.

 

Let's say that you have determined that you have a $1,200 poker bankroll.  What are your limits?

 

If you play full ring limit holdem you should limit yourself to 300 times the big bet.  $1,200/300 = $4, so you could play up to $2/4 full ring limit holdem with a $1,200 bankroll.

 

If short hand, or 6-max, limit is your game you should be a bit more conservative in order to guard against the increased volatility.  400 times the big bet is recommended.  Since $1,200/400 leaves you with a $3 big bet, you should stick to $1/2 limit until you have accumulated $1,600 in your bankroll.

 

If you play full ring no-limit poker, then you need a minimum of 25 buy-ins at 100 X the big BLIND, or 2,500 times the big blind.  At $1,200/2,500 you have 24 buy-ins for a .25/.50 game.  That's pretty close, so if you're an experienced player you should be OK.  Otherwise, stick to .10/.25 tables, or play short-stacked.

 

For short-hand no limit you need 40 buy-ins of 100 times the big blind.  With $1,200/4,000 = .30, you should be playing the .10/.25 tables.

 

For tournament play you need 25 buy-ins.  At $1,200 you can play up to $40+$4's.  If you prefer turbo tournaments you should have at least 40 buy-ins to account for the increase in volatility.  If you play rebuy torunaments, then your buy-in is the TOTAL amount you will pay for the tournament.  With $1,200 bankroll you should not rebuy or add-on more than 3 times total in a $10+1 tournament - for a total of $40+1.  If you want to rebuy more frequently then find cheaper tournaments to play.

 

Keep in mind that this guidance is for players who can win at poker.  If you're new or still learning how to win then you should be more conservative.  If you think you can't learn any more about poker and still aren't beating the tables, then your optimal table stake is $0.  You should stop playing.  A discipline that many players lack - much to our benefit!
 

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