Bankroll management for advanced players
Introduction
In this article
- How to know you are ready for short-handed poker.
- How to know when you are ready to move up a limit.
- The advantages and disadvantages of cashing out.
Now that you've reached Silver status, you're sure to have had experienced a few upswings and downswings along the way. The most important tool you have when making your way up the limits is solid bankroll management.
This article will address the following questions in detail:
- When are you ready for short-handed play?
- When are you ready for the next limit?
- What are the advantages and disadvantages of cashing out?
It should go without saying, if you haven't read the beginner's article on bankroll management yet, do so before you continue reading this article.
Go to the article on bankroll management
When are you ready for short-handed play?
Short-handed play has been growing in popularity for some time. These games tend to have more action, more fish at the table and tend to be more profitable for good players. You will also find a dwindling number of full-ring tables as you make your way up the limits.
You can take a beating if you switch to short-handed play before you are ready. You have to deal with bigger swings and will be required to raise your game a notch. Before you start playing short-handed, you should be sure to …
- have read and understood all the articles in the Bronze and Silver sections.
- have gained a financial cushion (at least 500 BBs).
- be mentally prepared. If you are hesitant or find yourself guessing more often than knowing what to do, you should stay away from the short-handed tables and work on your game some more.
You can find a good introduction to short-handed play here:
Go to the article: How do you play short-handed?
Don't switch to short-handed play until you've reached the $0.50/$1.00 limit. This means you need at least $500 in your bankroll and waiting until you have more doesn't hurt either.
The increase in action and in marginal spots you will find can be nerve-wracking. It's much easier to go on tilt at a 6-player maximum table. If you are prone to tilt, make sure you take a look at the psychology articles and videos before you give short-handed poker a try.
When are you ready to move up a limit?
Poker should be fun, but taking the time to build up your bankroll in the lower limits is a necessary step, even if it's not all that exciting. The real money is waiting, so be patient and you'll make it. Until then stay disciplined. Anyone itching to play $0.25/$0.50 won't make it far playing $5/$10.
Moving up a limit is always a risky step for a poker player. You play for more money so when you win, you win more; but when you lose, you lose more. The types of opponents you play against also change. Don't rush your decision. Before you move up a limit, ask yourself the following questions:
- Do I have enough money in my bankroll for this limit?
- Am I mentally prepared for this limit?
- Am I good enough for this limit?
- At what point should I move back down a limit if I suffer losses?
You know the general rules:
- You need 300 Big Bets in full-ring games.
- You need 500 Big Bets in short-handed games.
But these are just general rules that you can tailor to yourself. Everyone has to decide for himself how much of a cushion he needs to survive a downswing, without having to move back down immediately.
The simple truth is that you can play more relaxed and freely when you aren't on the verge of having to move down a limit. If you want to dive into a new limit and are willing to take risks from the word go, you should give yourself a larger cushion than 500 BBs.
Moving up a limit always requires you to adjust your game, which is usually difficult at first and results in losses. Don't let this get to you. You know what to expect and can prepare yourself ahead of time.
Be honest when asking yourself if you are ready. Do you have enough discipline to move back down if you lose too much? Have you had trouble moving down a limit in the past? If so, you may also want to give yourself a larger financial cushion.
You can take a direct approach if you are the type of player who can deal with setbacks and has the discipline to move down a limit as soon as financially necessary. If not, let your bankroll grow a bit more before you move up to the next limit.
There are players who have made a steady profit at their limit for some time, but are afraid of progressing to the next step. They may not feel comfortable playing with so much money or lack the confidence to play at the next level - there are a number of reasons.
These are extreme cases, but the point to an important aspect of poker: the comfort zone. The number of BBs you need in your bankroll to change limits are just numbers on paper that guide you; psychological bankroll management is just as important.
Play the limit you are most comfortable at, where you can deliver your A game. Find your comfort zone.
If you find yourself constantly checking your account balance, regretfully pushing money into the pot, or having inhibitions when it comes to making the right move, you are probably outside of your comfort zone.
A player in his comfort zone plays the best poker he can without worrying about winning or losing. It may sound like a cliché, but there is truth in the saying: "Winning money is a side effect in poker."
Remember when grandma used to say, "Anything you don't have to work for isn't worth having"? The basic strategy you need for the micro/low limits is easy enough to learn, but there comes a point when it won't take you any further.
This is remedied by moving up a limit. As you work your way up, you will find more and more players who are just as good as you, if not better. The flow of the game changes, too. You will encounter new table constellations and face more difficult decisions.
Losing money isn't the only sign that you aren't ready for the next limit. If you keep finding yourself in tough spots where you just don't know what to do, you may need some more time before attempting the next limit. If you can't spot the fish, you might be the fish.
PokerStrategy.com offers the most diverse learning material on Fixed Limit. The problem is that you have to use it! Reading an article now and then and watching a video or coaching session is better than nothing, but not much better. Invest time and take advantage of everything we offer. Set goals for your bankroll and your learning progress.
Before you move up a limit, take the time to observe a few tables at that limit and get a feel for the game. If you can honestly tell what the players are doing and know what the right reaction would be, you're ready to take a seat.
Before you move up a limit, you should know exactly at what point you will decide to move back down if you are not successful. This is prescribed in part by your bankroll management, but is also relative to the financial cushion you give yourself.
Setting yourself a limit and sticking to it, is of utmost importance. If you wait too long to move back down, you may find your bankroll too weak for the next limit down when you do move. There is no sense in moving up with 500 BBs and waiting until you have 300 BBs on the previous lower limit before you move back down. You don't want to end up having to move down two limits, because you played beyond your bankroll capacity for too long.
Pros and Cons of cashing out
Cashing out is an important subject when it comes to bankroll management. There are many players who want to cash out as much as possible, early on in their careers. Doing so, however, is often a poor decision from a financial point of view. You may be able to buy yourself something nice with the money earned and finally have something tangible for your efforts, but cashing out is a step back in your poker career.
Assume you have read and understood all the strategy articles. You've worked your way up to $0.50/$1.00 and built up a $500 bankroll. Then you switch to short-handed play. You have no trouble adjusting and your bankroll continues to grow.
You go to as many coachings sessions as you can and actively participate in the forums. You post and evaluate sample hands and basically do everything you should do to get as good as you can, as quickly as possible.
Your bankroll has grown to $800 and you could move up to the $1/$2 limit, where you would expect to continue winning. But then you start thinking about how nice it would be to buy a new monitor.
You cash out $400 leaving $400 in your account. You can then comfortably play $0.50/$1.00 and that would be fine if you plan to spend half your life at this limit. If, on the other hand, you want to make it to the profitable limits ($2/$4, $5/$10), you're going to lose a lot of time by cashing out.
Assume your win rate is 2 BBs / 100 hands and you play 300 hands per hour. You would make an average of $6 an hour at $0.50/$1.00. At $1/$2 you'd be making an average of $12 an hour, and at $3/$6 a good $36 an hour.
You're giving up the chance of doubling your hourly profit by giving in to temptation. It's also going to take a lot longer for you to reach the next limit at $6 an hour.
In order to earn $400 at your win rate, you would need to put in an average of...
- 67 hours at $0.50/$1.00
- 33 hours at $1/$2
- 17 hours at $2/$4
- 11 hours at $3/$6
- 7 hours at $5/$10
The further your cash out takes you from the amount needed to move up a limit, the more the harm done in cashing out. The lower your limit, the longer it will take you to reach the higher stakes. There are many reasons for waiting until you've reached the profitable limits, before you cash out.
Just like in real life: "time is money". If your goal is to reach the $5/$10 limit for instance, you shouldn't look at the limits along the way as a place to earn money, but rather as a place to build up your bankroll, until you can start making money at $5/$10.
There are of course a number of positive reasons for cashing out, even though it is a financial set back in your poker career. Cashing out can bring a number of psychological benefits, such as rewarding yourself for work well done or motivating yourself during a downswing.
The advantages of cashing out are:
-
You have reached a goal and want to reward yourself. You know this will slow you down but you are O.K. with it. You'd rather treat yourself to a small reward, and put off moving up a limit for a bit longer.
-
You are in a serious downswing and haven't cashed out for some time. Cashing out can be a great motivator in such a situation. After all, it's the fruit of your labour and sometimes you have to remind yourself of why you play poker.
-
You play for a substantial amount of money. Cashing out is a big help to your financial situation outside of poker.
-
You're having an unbelievable upswing or just hit a jackpot. You could move up, but don't feel ready. The money isn't doing anything in your account, since you're not going to use it to justify moving up a limit.
Conclusion
Finding the right bankroll management isn't just a matter of setting boundaries in BBs. Always ask yourself if you are ready for the next level from a financial and psychological point of view. Don't move up if you aren't ready. There's nothing worse than being the fish at the table.
You should already know how important it is to stick to your bankroll management and move down a limit when necessary. Moving down isn't admitting defeat, it's part of the game for every sensible player. Set yourself limits and stick to them. Don't press your account to the maximum because you want to be able to play comfortably. If you do have to move down, you want it to only be one limit and not be on the verge having to move down again immediately.
| LINKS | |||||||
|
|||||||
