Last updated on March 12th, 2025 at 10:43 am
Poker isn’t just a game of skill, strategy, and the luck of the draw. It demands meticulous discipline and financial management.
Bankroll management is a fundamental pillar of poker success. It determines your long-term success playing with us here at Mega Dice—or whether you consistently end up going broke.
Poker bankroll management may sound esoteric at first. But it simply means knowing how much of your bankroll you can risk without losing it all in one fell swoop. Unfortunately, poor bankroll management in poker is often the root cause of the first mistakes all players make starting out.
Definition and Importance of Poker Bankroll
Bankroll refers to the amount of money you allocate solely for playing poker. Bankroll management is the practice of controlling your budget so you never risk money you can’t afford to lose.
Proper bankroll management requires an understanding of variance. This means your bankroll should be able to weather the inevitable swings that come with playing poker. Bankroll management isn’t a matter of merely preserving your poker funds—it’s also about ensuring that you’re playing the right stakes for your skill level.
Importance
Variance is inherent to poker. It’s the natural statistical fluctuations that could happen due to luck. Variance can cause winning and losing streaks, whether you play flawless game-theory-optimized poker or simply have a ball.
You could be dealt the best hand in the game with pocket aces but still lose against a statistically worse hand because of the randomness of poker. That’s variance. It’s the difference between expected results and actual results—and it affects the amount of money you win or lose.
You can’t avoid variance. But you can minimize its effects with bankroll management. This means ensuring your poker bankroll is aligned with the stakes you’re playing at.
Common Misconceptions
Here are some common misconceptions about poker bankroll management.
- Mistaking luck for skill. Players often attribute winning streaks to their skill and losing streaks to bad luck. But as we mentioned earlier, they’re all a product of variance. Variance skews short-term results over several hands. But over a larger sample size, players who make better decisions will statistically win more often over time.
- Co-mingling poker bankroll with disposable income. Keep strict boundaries on your gambling funds and your living expenses. Set a bankroll that won’t compromise your financial stability.
- Bankroll management guarantees profitability. Proper bankroll management in poker helps you withstand losing streaks. But it doesn’t turn you into a winner. It’s simply a way to ensure your funds last long enough to give you a shot at being profitable.
- Bankroll management is for beginners. On the contrary, all players benefit from sound financial management principles. Bankroll management allows you to stay disciplined, avoid emotionally charged decisions, and have the best chance at long-term profitability.
Setting Up a Bankroll
Poker bankroll management starts with determining how much you can risk and separating it from your personal finances.
How Much to Start With
Determining your starting bankroll is like investing in any financial venture. It’s like starting a business—you’re investing in your ability to turn a profit.
That requires financial responsibility. Approaching the issue as “I’ll start with $1,000 and reload it whenever I lose it” means you lack the discipline to build a bankroll. It would be reckless to assume you could invest 100% of your net worth in anything. Setting a starting poker bankroll isn’t any different.
Treat your bankroll as an investment. It should be an amount you’re comfortable losing. Every decision matters in poker. Finding the suitable amount helps you play your best.
Here are some rules to avoid going broke:
- Multi-table tournaments (MTT). Never buy into a multi-table tournament for more than 2% of your bankroll or the minimum available.
- Cash games. Never buy into a cash game with more than 5% of your bankroll or the minimum available.
Separating Bankroll from Personal Finances
Separating your poker bankroll from your living expenses is a tenet of good bankroll management. For instance, if you have $3,000 but need $2,500 for living expenses, then you have a $500 bankroll. It’s a cardinal sin to dip into your living expenses to fund your bankroll.
Bankroll Management for Cash Games
Cash games range between medium to high variance. Here’s how to manage bankroll in poker cash games.
Cash Game Buy-ins
A good rule of thumb is to risk 5% of your total bankroll for cash games. In terms of bankroll, that could range between 20 to 50 buy-ins. If you’re playing NL10 (with $0.05/$0.10 blinds), and the maximum buy-in for the table is $10, that means you should have at least $200 to $500 to play with.
By the same logic, if you have $100 to play with, you shouldn’t play anything higher than NL5 (with $0.02/$0.05 blinds). That would give you a minimum of 20 buy-ins at $5. You’ll need to start with $250 if you’re playing with 50 buy-ins. So, simply apply this principle depending on buy-in amounts in different NL games.
Playing under-rolled is a recipe for disaster. That means you’re playing with a bankroll worth less than the recommended 20 to 50 buy-ins. It puts you at a higher risk of losing your entire bankroll. Worse, you’re playing under higher pressure and risk of tilting.
Adjusting for Win Rates
Win rates play an important role in setting your bankroll. To keep track of your win rate, do the following:
- Monitor how much you buy in and how much you leave the table with each time you play.
- Keep track of how many big blinds you win over 100 hands. You can use poker tracking software or apps to do this easily.
- Include any other deductions to your bankroll. This includes the rake, tips, and any other poker-related expenses.
No amount of poker bankroll management can make you profitable if you don’t have a positive win rate. If you’re playing with negative expectations, you will lose over the long run. Adjusting for win rates helps you find the stakes at which you perform best. That stake determines your bankroll size.
Bankroll Management for Tournaments
Poker tournaments are categorized as extremely high-variance games. The latter is characterized by long dry spells at the table. They’re akin to hitting the jackpot at a slot game. This means you’ll need a more conservative bankroll management strategy.
Standard Tournament Bankroll Guidelines
For standard tournaments, it’s good practice to risk not more than 2% of your bankroll for any one buy-in. Since variance is extremely high, tournament players need to have a bankroll corresponding to at least 100 to 150 buy-ins to manage the swings. So, if you have $1000 in your bankroll, play only in tournaments that don’t exceed a $20 buy-in.
100 to 150 buy-ins offer a safe margin for variance. The important thing is to be comfortable with your bankroll, stay within your budget, and not play under pressure.
Selling Action for Larger Tournaments
Tournament poker is extremely high in variance. One misplayed hand or bad beat can knock you out at any time. Selling your action and splitting the costs with investors help you lessen the blow in such situations. Selling action reduces variance while allowing you to profit if you win or if you get in the money. It can be an interesting way to play at higher buy-in tournaments without risking too much of your own money and make money for everyone involved if you score a payday.
Advanced Bankroll Strategies
Experienced players often employ more nuanced strategies to fine-tune their results.
Shot-Taking at Higher Stakes
“Taking a shot” within the context of poker means moving up to play higher stakes. The goal in shot-taking is to risk your bankroll to win enough money to move up a level. It’s a risky proposition due to the bigger bankroll and punching above your weight.
Having a stop-loss is essential. It refers to the maximum loss you’re willing to take before standing up and walking away. If you hit your stop loss, be prepared to move back down to your usual stakes. Don’t chase losses.
Moving Up in Stakes
Your decision to move up should be based on your win rate over a sample size of over 20,000 to 50,000 hands. If you aren’t profitable, don’t move up in stakes. Remember, you can always move down levels and make adjustments to your game if it doesn’t pan out.
Common Pitfalls and How to Avoid Them
Poker is a game of decisions. Here’s how to avoid its most common pitfalls.
Emotional Decision-Making
When you’re emotional, you don’t always make the best decisions. Emotional decision-making is a rite of passage for all poker players. It’s something even the best poker players in the world fall into. “Tilting” is when you deviate from your strategy due to the frustration of bad beats or long dry spells with crappy hands.
Heaters, downswings, and suckouts are all part of poker’s variance. It’s important to stick to your strategy despite the short-term results seemingly turning against you.
Session Loss Limits
We’ve talked about stop losses when taking shots. You must also set loss limits in every session. Knowing when to quit is always hard for cash game players—but doing so can also be a win. Don’t fall for the gambler’s fallacy of believing you are “due” a win during a losing streak.
Record-Keeping and Analytics
Keeping records is essential to proper bankroll management, telling you exactly how much you’re up or down. More importantly, it gives you insights as to why you’re up or down.
Importance of Tracking Results
Tracking results shows you:
- Your win rate. You’ll never know how profitable you are until you track your wins, losses, and total outlay.
- Your hourly rate. If you’re playing poker for income, you want to know how much you’re earning or losing at an hourly rate. This determines whether your poker hobby is actually profitable and, if so, how much it pays you over a set timeframe.
There are plenty of free and paid resources and apps that help you track every statistic. If you’re serious about playing poker for a regular income, these are necessary to your success.
Analyzing Your Play
Most importantly, keeping records helps you analyze your play and give you insights as to how to become more profitable. It helps you determine:
- Your best game. Tracking your wins and losses helps you determine which poker game type you’re best at based on hard numbers. It helps you stick to your strengths, identify areas for improvement, and select better games.
- Your suitability to short and long session times. Some players earn more playing long sessions, while some prefer shorter sessions. Tracking records helps you determine when you begin playing recklessly or when you tire.
Frequently Asked Questions
How do I know if I’m ready to move up in stakes?
Your win rate over a large sample size and your bankroll determines when you’re ready to move up.
What should I do if I lose my entire bankroll?
The first step is to reassess your bankroll management strategy and identify key improvement areas. Consider moving to lower stakes and working out the kinks in your game.
How do I handle variance and long losing streaks?
Poker is variance. Losing streaks are part of the game. Stick to managing your bankroll wisely, avoid chasing losses, and take frequent breaks to keep a clear head. Even top players go broke.
Is it ever okay to take a break from bankroll management rules?
Casual players don’t have to worry about bankroll management. If you’re playing poker for an income, only deviate with extreme caution and if you can take on the potential risk.
How can I rebuild a bankroll from a small amount?
Start with the smallest possible stakes and focus on maximizing your win rate. Play low-rake and low-variance games with us at Mega Dice and test your game on softer competition.