Why Bankroll Management Matters
Bankroll management is the discipline of only risking a small fraction of your total poker funds in any single session or tournament. Even winning players experience losing streaks due to variance. Without proper bankroll management, a run of bad luck can wipe you out before the math has time to work in your favor.
Think of your bankroll as your business capital. A profitable business can still go bankrupt if it over-leverages. The same applies to poker.
Recommended Buy-In Rules
| Format | Buy-Ins | Example |
|---|---|---|
| Cash games (conservative) | 30 buy-ins | $6,000 for $1/$2 NL ($200 max buy-in) |
| Cash games (aggressive) | 20 buy-ins | $4,000 for $1/$2 NL ($200 max buy-in) |
| Tournaments (conservative) | 100 buy-ins | $1,000 for $10 MTTs |
| Tournaments (aggressive) | 50 buy-ins | $500 for $10 MTTs |
| Sit & Go | 40-60 buy-ins | $200-$300 for $5 SNGs |
Tournaments require more buy-ins because they have higher variance — even the best players only cash in about 15-20% of events. Cash games are less volatile because you play many more hands per session and can rebuy.
Moving Up Stakes
When your bankroll grows, you can move up to higher stakes. Follow these guidelines:
- Move up when you have the required buy-ins at the next level. If you need 30 buy-ins for $2/$5 ($500 max buy-in), you need $15,000 before making the move.
- Move down if you lose 3-5 buy-ins at the new level. There is no shame in dropping back down. Protecting your bankroll is more important than ego.
- Never jump more than one level. Going from $1/$2 directly to $5/$10 skips an important adjustment period.
Shot-Taking
Shot-taking means taking a calculated risk at a higher stake with a limited number of buy-ins. It lets you test the waters without committing your full bankroll.
- Set aside 2-3 buy-ins for the shot.
- If you lose those buy-ins, drop back immediately — no exceptions.
- If you win and build up to a proper bankroll at the new level, stay.
- Only take shots when you are playing your A-game and the game conditions are favorable.
Variance and Downswings
Even a strong winning player can experience extended downswings. Here's what to expect:
- 5-10 buy-in downswings happen routinely, even to solid winners.
- 15-20 buy-in downswings are uncommon but statistically inevitable over a career.
- 30+ buy-in downswings can happen in tournaments, where variance is extreme.
During a downswing, focus on your decision quality rather than results. Review your hands to confirm you are still making +EV plays. If your play is solid, the results will recover. If you find leaks, fix them before continuing.
Common Mistakes
- Playing too high: The number one bankroll killer. Stick to your limits.
- Not moving down: Ego prevents many players from dropping stakes when they should.
- Mixing bankroll with life expenses: Keep your poker bankroll separate from your living money.
- Chasing losses: Moving up to "win it back" is a recipe for going broke.
Next Steps
- Understand expected value to evaluate your long-term edge.
- Review the poker math cheat sheet for quick reference on odds and equity.
- Test your skills to sharpen your decision-making.