Poker Bankroll Management

If you plan to play high stake games, it's important that you learn how to manage your bankroll. Having a good sized bankroll is important so you can withstand losing streaks and not completely zero your account.

For beginners, bankroll refers to the amount of money you set aside and deposit in your online poker site account. As we all know, gambling is very high risk and unpredictable. One day you're on a winning streak, the next day you can't seem to catch a break.

Therefore, to avoid spending all your money in poker, it's important that you use good bankroll management practice.

The type of bankroll you should keep depends on your reasons for playing poker in the first place. A beginner or casual player starts out playing for fun and learn the ins and outs of poker as they progress. At this stage, they play with what they can afford to spend for a hobby.

Professional poker players, on the other hand, take out money from their bankroll to pay for mortgage, healthcare, daily expenses, and vacations so they have a dedicated bankroll that they manage to avoid getting broke.

It's important that you identify what type of poker player you want to be so you can set your bankroll up accordingly.

Bankroll Management Golden Rules

Chris Ferguson, a well-known online poker player and a member of "The Future Tilt" team gave very helpful tips on how to properly manage your bankroll. Ferguson's claim to fame is when he turned $0 to $10, 000 with his "From 0 to Hero Online Poker Challenge."

Ferguson claims that he awes most of his success to his well-defined bankroll management system, which sets him apart from other players.

He started in the Freeroll Tournaments until he was able to earn some real money, and from here, he exercised extreme bankroll management system to increase his bankroll.

This tried and tested formula of his will surely help you in managing your finances. Make sure that you follow the rules to the dot to see positive results.

1. 1Don't ever join a cash game or SNG tournament with a buy in of more than 5% of the entire bankroll you've got. However, if you have a small bankroll and you're going to play a Sit and Go or cash game where the buy in is lower than $2.5, then feel free to join.
2. 2Don't join a MTT (Multi Table Tournament) with a buy in 2% higher than your current bankroll not unless the buy in is lower than $1. This will help keep your money intact.
3. 3If you manage to win at a cash game and your money at the table represents more than 10% of your online poker bankroll, then you must cash out of that table as soon as the blinds reach you.
4. 4Never play in a game that is beyond your bankroll just because the game seems to be soft that day. It's never soft enough to risk money. This will put your bankroll in jeopardy.
5. 5Avoid playing in games that are at the top of your bankroll limit, when a lower game offers more opportunity for profit.

Aside from these sensible rules that Chris Ferguson offered, other things that you should practice are:

• Don't play when you're scared. The moment you go to higher stakes that you can't afford, you will start to get nervous of losing your entire bankroll and you will not be able to concentrate in the game. Bluffing is a crucial part of poker and you will never be able to act the part if you're not confident.
• Know when to stop. Gambling in general is also about streaks. There are days when lady luck is not on your side. When you don't get any premium hands, or you make wrong decisions one after the other, it's time to walk away to avoid further damage in your bankroll. Take a breather first and come back the next day.
• Flexibility is the key. Feel free to move from higher to lower stakes depending on your current situation. Learn how to play different sets of game especially if you're stuck in a rut.
• Be positive. It takes a lot of practice to become good and win in online poker. Don't get discourage when you lose and just keep improving your skills and you'll eventually catch a break and get on a winning streak.
• Don't chase after your loses. One of the biggest and most common mistakes gamblers in general make is to chase a lost. If you lost a good deal of money, don't ever try to get it back by playing the same stake again. Try going for lower stakes and hopefully you'll get your mojo back and win some again.

Chris Ferguson's golden rules are very straightforward and if you practice all of it together with some of the general tips mentioned above, you'll be able to maintain a healthy bankroll or even hit the big pot. It may not be as big as $10,000, but you'll surely get your money's worth if you follow the above guide.