Note that the title says “A Solution” and not “THE Solution”. There are unlimited ways to manage your bankroll; even not following bankroll management at all is reckless bankroll management. Providing you are following the key rules then you are somewhere close to how you need to be operating your money. Even the softest poker room demands a bankroll management solution, note that this advice is relevant to online cash games and Online Sit and go poker tournaments.
Whilst I said in part 1 that there are no rules, I believe that the following four pointers are as close to rules as we can get in bankroll management. You can add your own ideas to these rules based on your own tolerance to gambling and ability to control your emotions. The key thing is to be honest with yourself and then your bankroll management plan will be very effective for you. These rules are as follows,
1. Only risk a small portion of your roll at any one time.
2. Never risk more than you can afford to lose.
3. Set a stop-loss and walk away if this is surpassed.
4. When you are winning, book the win!
Rule 1 – Risk only a Small Portion of your Roll
You should never risk more than a small portion of your bankroll at any one time. I use a thirty buy-in bankroll where the buy-in will be the maximum stack allowed at any table. Therefore, on a $2 NL table I need a $60 bankroll to be able to compete within my rules. On a $5 NL table I would need $150. You can go as high or as low as you wish but I would draw the line at anything less than ten buy-ins as this begins to get risky.
Most players have a twenty buy-in bankroll and move up limits to take a shot when their bankroll is large enough to buy-in fifteen times in the next level up in stakes. They also move down in limits and re-build if they reach less than fifteen buy-ins for the current level in which they are playing. Once you have a bankroll you should not re-deposit, the whole idea is that this money grows over time as you win, rather than consistently losing money and busting is less likely even on a bad run as you adjust stakes depending on how much money you have left.
Rule 2 – Risk Only What You Can Afford
As a one-off allocation of your net liquid worth I would suggest setting aside a conservative 10% of what you earn each month and no more. A profitable poker player must be able to win and starting with $2000 rather than $200 will not help you if you are a losing player, the money lost will be more. Gambling scares families who have your best interests at heart, being able to show them that you are responsible and acting prudently will help them adjust to your pursuit. With $200, if you win enough you will get to $2000 soon enough, be patient.
Never chase losses, never gamble more than you can afford to lose and always keep a perspective on the value of money and what else you need it for. Setting aside a bankroll sets you free from these constraints and is another reason why it is a great benefit to your poker game to manage your bankroll very carefully.
Rule 3 – Set a Stop Loss
Tilting when you are losing and playing “one more round of hands” to try and recoup what you have lost can make you feel anxious and desperate. You start calling in marginal situations where folding is best and not playing your best poker game. The poker gods know this is not the right way to play and you will suffer losses doing this apart from the rare occasions you get lucky. Many a bankroll has been lost by chasing what are rather marginal losses and getting caught in the vicious circle that is chasing losses. Most of the classic losing stories where casino players have lost everything in a matter of hours is due to chasing losses. Make sure you do not fall foul of this by setting and following a strict stop loss limit.
Combating this feeling is important to maintaining your bankroll. Set a stop loss for sessions that do not quite work out. I would recommend something like three buy-ins. Take a break if you reach this point and decide if you want to carry on or come back tomorrow. Poker is a long term game and chasing one buy-in will not be worth it when you are aiming to win many buy-ins over the year. Take a long term view and you will see maintaining your best game should help you win over time. Suffering a bad run or bad beat is just part of being a poker player.
Rule 4 – Book the Win
What we are aiming for is a healthy monthly withdrawal from our poker bankroll that bolsters and improves our lifestyle. Keeping a bankroll keeps your poker money and life money separate which should make life easier in many ways. Booking the win turns poker money into real money and you will immediately see the real term benefits from having won it and this feels very good. This should provide you will all the motivation you need to continue putting in the study, the hard work and managing your bankroll ready for next months withdrawal.
Bankroll management is like a safety valve for your poker; it keeps things in order and allows you to focus on controlling your emotions at the table and knowing you are able to play poker without worrying about busting. Taking small losses become less painful and are part of winning poker but you will not worry about them because you are in the top 5% of players who approach poker correctly by using proper bankroll management.
By Malcolm Clarke