Understanding bankroll management is very important for new and experienced poker players. Far too many players simply take out and deposit money from their own accounts to play poker, and don't really know how much, or if at all, they are up or down. It is important to remember that there truly are not that many winning poker players out there. There are many players who don't keep track of their wins and losses, and just assume that they are a winning, or at least break even player.
The fist step to managing your poker bankroll is to determine how much bankroll to start with. Although starting bankroll determinations are not an exact science, it is generally a good idea to start with enough bankroll to allow yourself to experience the swings of poker without going broke. You may have 4 or 5 losing sessions in a row, but still be a winner at the end of the year. If you are a serious poker player, I typically recommend a minimum starting bankroll of 300-500 X the big blind of whatever limit you are playing. For example, if you are playing $5-$10 limit, a good starting bankroll would be $3,000-$5,000. Another aspect of starting bankroll is the game you will be playing. Certain games, like no limit and pot limit games will require a larger starting bankroll, as the swings are typically higher. Also important in determining bankroll is the type of player you are. If you are a tight player, you may be able to start with less, but if you are an aggressive player, you may need to start with more.
It is very important for players to keep track of their poker play. If you think of it as a job, you must 'clock in' and 'clock out' just like a typical 9-5 occupation. Here are the things you need to keep track of:
- Number of Hours played
- Game Limits
- Day of Week and time of day
- Profit and losses
With this information, you can easily find out how much you have won or lost based on location, limits, and time of day. Using this, you can determine where you make the most profit, and where you struggle. For example, you may find that weekend games are more profitable for you, and games in the evening are more profitable for you then games in the morning. Using this info, you can hone your game to the exact specifications that will maximize your profits. It is important to note that you need at least 15-20 sessions before you can start noticing trends, and taking action on those trends. I would recommend 100+ hours at a particular limit before taking action on your statistics.
Don't be discouraged if, after several sessions, are are just breaking even. Remember that with the house rake, or session fee, along with expenses involved in poker, you have to be a winning poker player just to break even.
Phil Lack talks about bankroll management and buyins to cash games