Poker Novice - Bankroll Management

OK, so you deposited real money on an online site and decide you want to play some ring/cash games. The most important thing to think about before entering a game is can you afford to play it. This is where bankroll management comes in. Bankroll is the amount of money you have to play poker with. After a $25 deposit, your bankroll is $25. In very basic terms bankroll management helps you not only protect yourself from a few losses, but also gives you goals to work towards.

Firstly, I'd suggest any bankroll should start at the lowest game, just to make sure you are capable at that level. Even if you start with a $10,000 deposit, you need to build up the skills, so don't always go just by bankroll management.

So lets start with a number: 1250. That's how many big blinds (BB) you want before starting a new limit. So if you deposited $25, you are spot on for 2c big blinds, which is the 1c/2c game. If you put $65 in you are above the limit for the 5c big blinds or 2c/5c games.

Why 1250? Lets start by explaining a stack. A stack (also known as a buy in) is the money you enter a table with, which by default might be $3 for a no limit 1c/2c table. You want to be able to freely win or lose with that stack without worrying about affecting your overall bankroll too much. The less fear of losing, the more confidence you play with. However, it's important not to underfund a buy in, like taking $1 to a 1c/2c game. For example you hit a big flop that can't be beat and a player with a $3 stack bets 50c. Now you have spent half your stack, and can only bet another 50c, limiting the total pot to $2, as opposed to $6 if you took $3 with you.

So why 1250? Assume, in the above case you actually had $3 but read the hand wrong, he's actually hit 4 of a kind, and takes your stack. You refill, and your bankroll loses $3 instantly. It happens again later that day, and you lose another $3. It's not so much bad betting (or maybe it is), but you've just lost $6 in one night. If your starting bankroll was only $10 or 500BB, you are now up against it and really can't afford another loss. However, if you started with $25, you still have $19, and have ample room to make a couple more $3 losses before getting back on a winning streak (hopefully).

So when do you move up a level? When you have 1250BB for the next limit, in this case $62.50 for the 5c game, it's time to move up. You've proven to be too good for the 2c players by more than doubling your money, so go for it. Again you have plenty of breathing space to lose the higher $6 stack a few times before getting yourself up to speed. If you continue to dominate that, get to $125 before entering the 10c game and so on. It's very simple, as it makes sure you are beating a level consistantly before moving up.

And when do I move down? You've made it to the 10c game with $125 bankroll, but are now losing a lot of times. Before you know it you've fallen back to $60 at this level. You are now back to the bankroll figure for 5c games. You aren't winning for whatever reason, it's time to drop back. This way, even if you go further down with a bad downturn, you'll effectively still be at a decent bankroll level for the game you are playing, and won't easily blow the rest of your money.

This is obviously flexible. I'd probably suggest dropping back a little earlier if you are just overwhelmed by the higher level, and perhaps moving up quicker if you think you stand a good chance to dominate there. But keeping that 1250 figure in your head gives you a good idea of whether or not you are up to a certain level yet.