Managing your money

Many skilled poker players don't make nearly as much money as they should. Some actually go broke. How this is possible? They don't know how to handle their money. Good money management requires a lot of discipline and there is much to think about.

A poker players' lifeline is his bankroll. Without it, you will never be able to make a profit. You must realize that the money you win at the poker table is operating capital. This capital should be used only for poker playing. When you've won enough money at one limit, you should either pocket the winnings or use it to step up a level.

To feel comfortable when you're playing poker at a certain level you need a bankroll that is around 300 times the size of the big bet. Consequently, if you're playing in a $20-$40 limit game you need a bankroll of $12000.

If your bankroll isn't big enough you run a big risk of going bankrupt. Here is an example: The range of earnings for a solid poker player in a $20-$40 Limit game can differ from -$11,000 to $19,000 after only 100 hours of play. The same player can only be sure of breaking even after playing 1400 hours. This clearly shows the huge influence chance and luck has on your short-term earnings. It also shows the importance of a sufficient bankroll.

Hourly earn rate

A skilled Limit Hold'em player in a full-ring game generally makes about one big bet per hour in a full-ring game. For example, in a $15-$30 game, $30 an hour is a healthy profit.

Hobby players

If you're a hobby player you must be aware of how much money you're prepared to risk, because chances are you will lose. However, if you're really lucky and play solid poker you might steadily be able to build up a large bankroll from a minor investment.