One of the most effective but often overlooked concept of winning at
poker in the long run is bankroll management. The term bankroll
refers to the amount of money reserved for playing poker, not the
player's overall savings. Players should not risk more than
5% of their bankroll amount in poker session. For example, if
you deposit $1000 to a poker site, it would be recommended to risk no
more than $50 in one sit and go or cash session. For
multi-table tournaments, no more than 3% of your bankroll should be
risked. By risking a small portion of your bankroll, you are
less likely to gamble your whole bankroll on bad runs.
Disciplined players can wager a higher portion of their bankroll, but
it is important to keep the principles of bankroll management in mind
with each session.
Keeping track of your money is equally important. There are
many programs that will do this for you, but if you'd rather not pay
for additional software, a simple MS Excel file will do. If
you do not have Excel or any other spreadsheet software, use a note pad
and write your activity in a detailed table. The point is not
to be fancy, but to know where your money is going. Write
down the date in one column, the game you played (i.e. NLHE SNG) in the
next, the amount you bought in for in the next column (include the buy
in fee for tournaments), the amount you took away from the session (or lost) in
the next column, and your adjusted bankroll balance in the last.
If you are playing a cash game and rebuy, or lost your chips
early in a tournament and are starting another, use a new line.
Review your progress regularly. If you are losing
money, try to find out where the holes are in your game and bankroll
management system.
NEVER try to recoup your losses by playing at the next highest level.
If your game is solid, you will regain your losses sooner or
later with proper bankroll management. Move up or down in
levels when the math is right. I recommend saving a number of
buy-ins extra to get used to the level of play at the next level.
That is, if you normally play $10+1 SNGs and are looking to
move up to $20+2 SNGs, wait until you have nearly $500 in your bankroll
to make the jump. Most new players are too anxious when they
win a few low-level SNGs and build their bankroll several times what
they bought in for. When the cards run dry, their money is
gone within a day, or sometimes even within hours.
Follow a similar regimine if you find yourself knocked down a bit and
have had a bad run in cards. Bad runs happen, but you do not
have to let it drain your poker bankroll. Drop down in levels
if you have to when the math tells you to. Don't worry that
you can't brag to your friends after you made a few hefty cashouts.
Grinding at low levels is a skill; patience is a requirement,
big egos are death sentences.
