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Managing Your Bankroll In Poker
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Tips On Managing Your Poker Bankroll
Effectively managing your poker tournament bankroll is an important skill which is often overlooked by newer players but after you read our poker tips and strategies you will be on your way to mastering online poker. Poker has a large element of chance factors, ranging from a cold run of cards to bad-beats. For tournament players good poker bankroll management is even more important due to the higher ‘variance’ of tournament play.This article will look at bankroll management for tournament players in several ways. Firstly the nature of tournament payouts will be covered and suggestions made for bankroll levels to counter the associated swings. Secondly we will look at bankroll management for tournament players from the angle of your player type and playing style. A professional or semi-professional tournament player will need a bigger poker bankroll than someone playing part-time for profit and leisure.
Related Poker Strategy Articles: The profits made from poker tournaments are usually expressed in terms of ‘Return On Investment’ (ROI). A fairly good player can expect to have a ROI of 50% to 80%, while an expert may reach 120% or even more. Examining the payout structure of poker tournaments will show that the prizes are ‘top heavy’. The last few places are paid many times the initial buy-in while the lower prizes are often just twice the initial fee.
Looking at the ROI expectations and prize structures together shows clearly that poker tournaments are high variance games. That is the occasional win will be balanced by many smaller cashes and out of the money finishes. It is this variance which dictates the need for any individual player to have many times the buy-in for a particular level of tournament to avoid the risk of going broke.
The number of buy-ins required for effective bankroll management for tournaments is high. The suggested number is at least 30 to 50 times your average buy-in. The reason for this high number is that chance plays a significant role in the tournament situation. Even if your poker skills enable you to get your money into the pot as a big favorite on several occasions the odds are against you even cashing! An example will demonstrate:
Say that you manage to get your money into the middle 3 times during the early to middle stages of a poker tournament as a significant favorite. Once with an over-pair and twice while dominating a smaller ace with an Ace-King. You are more likely to be out than to have a big chip stack according to the math.
- Hand 1: KK vs JJ – You win 80% of the time.
- Hand 2: AK vs A9 – You win 70% of the time (70% of 80% = 56% Still In Tournament)
- Hand 3: AK vs A6 – You win 70% of the time (70% of 56% = 39% Still In Tournament)
Even though you got your money in as a big favorite all 3 times you will be busted more than 60% of the time. The solution – make sure your poker tournament bankroll is large enough that you can play enough tournaments that chance will even out – bankroll management is key. Someone who relies on poker tournaments for their income should practice even stricter bankroll management guidelines. 100 buy-ins or even more is not uncommon for the poker professional. Conversely a recreational player may survive with a smaller bankroll than suggested – as long as the individual is able to reload their poker account if the natural variance of the game reduces this to zero.
Some poker rooms offer special promotions that will essentially give you free poker bonus money to use to buy in to poker tournaments. Other rooms give new players tickets that they can use to enter real money tournaments or freerolls. these are not standard deals, you will need to signup through Pokerpotz.com in order to receive them. Here is an overview of our best poker tournament bankroll offers:
Bodog Poker - Bodog and Pokerpotz have agreed to give new signups a ticket to the $100,000 GTD Sunday tournament. You will play in a small feeder that awards the winner with a $162 tournament ticket. If you decide to deposit you will receive up to $100 instantly and up to $1,000 in bonus money. You can sue the free $100 cash credit to immediately register for tournaments and sitngos. Bodog accepts US players and is our top sportsbook for US citizens in 2012. Read our Bodog Poker review for more info.
Betsharks Poker - This new 3D poker room is giving away free tournament bankrolls in several ways. You do not even have to deposit to play in real money tournaments at Betsharks. Betsharks hosts a $500 tournament for new players. Since Bet Sharks is a brand new independent US poker room the number of entrants is less than 100. You will also be able to play in the four daily $50-$100 tournaments. Last time I checked there were an average of 75 entries in these events. When you birthday comes around you will also receive 1,000 FPP's which you can use to buy into real money tourneys. Check out our Bet Sharks review for more details about this new poker room and 3D casino. Finally, your playing style will have an influence on the number of buy-ins required. A conservative player who ‘plays to cash’ first then plays to win later will usually have a lower ROI than someone who aggressively accumulates chips throughout the game. However the conservative style may require a smaller starting bankroll than for the more profitable aggressive player due to slightly lower variance.
Tournament Bankroll Management Summary
To summarize, bankroll management is a key skill for tournament players. Ensuring that the natural variance, caused by the nature of tournament payouts and chance factors within the game, does not lead you to go broke. Professional and recreational players have different bankroll requirements and the playing style of individuals also influences how many buy-ins are required.
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