Why Bankroll Management Is a Core Skill
You can be a winning poker player and still go broke. It sounds contradictory, but it's one of the most common ways talented players exit the game. Bankroll management (BRM) is the practice of ensuring you have enough money in reserve to survive the inevitable losing streaks that every poker player faces — at every level.
This guide covers the fundamentals of BRM for cash games and tournaments, and explains how to make smart decisions about moving up or down in stakes.
Understanding Variance
Poker has a high degree of variance — even the best play does not guarantee short-term wins. A strong cash game player with a solid win rate can still experience losing sessions over hundreds of hands due to statistical variance. Your bankroll is the buffer that keeps you in the game long enough for your edge to materialize.
Recommended Bankroll Guidelines
Cash Games
The widely accepted rule for cash game players is to have at least 20–30 buy-ins for the stake you're playing. A buy-in is typically 100 big blinds (BB).
| Stake | Buy-in (100BB) | Recommended Bankroll (25 buy-ins) |
|---|---|---|
| NL2 ($0.01/$0.02) | $2 | $50 |
| NL10 ($0.05/$0.10) | $10 | $250 |
| NL25 ($0.10/$0.25) | $25 | $625 |
| NL50 ($0.25/$0.50) | $50 | $1,250 |
More conservative players — especially those still developing their game — may prefer 40–50 buy-ins for added safety.
Tournaments (MTTs)
Tournaments have much higher variance than cash games because of the winner-takes-most payout structure. Recommended bankroll for MTTs is typically 100–200 buy-ins. High-variance formats like turbos or short-stacks should be approached with even deeper reserves.
When to Move Up in Stakes
Moving up should be a deliberate decision, not an emotional one. Use these criteria:
- You have the full recommended bankroll for the next stake already built up.
- You've demonstrated a consistent positive win rate at your current stake over a meaningful sample (e.g., 50,000+ hands for cash games).
- You've studied the differences in player tendencies at the higher stake.
When to Move Down in Stakes
Dropping down is not failure — it's discipline. Consider moving down if:
- Your bankroll falls below 15–20 buy-ins for your current stake.
- You're playing emotionally or "on tilt" due to losses.
- You feel uncomfortable with the money at risk.
Set a hard stop-loss rule before each session: if you lose a certain amount (e.g., 3 buy-ins), you stop for the day. This prevents a bad run from becoming a catastrophic one.
Separating Poker Bankroll from Personal Finances
This point deserves emphasis: your poker bankroll should never overlap with money you need for living expenses. Keep a dedicated bankroll in a separate account. Playing with "scared money" — funds you can't afford to lose — leads to sub-optimal decisions and undermines your strategy.
Tracking Your Results
You can't manage what you don't measure. Use a tracking tool (spreadsheets, dedicated apps like PokerTracker or Hold'em Manager, or even a simple log) to record:
- Session date, duration, and stake.
- Starting and ending bankroll.
- Notes on any significant hands or decisions.
Reviewing this data regularly helps you identify patterns, spot leaks in your game, and make informed decisions about when you're truly ready to move up.
Summary
Bankroll management is the unsexy side of poker that separates long-term players from short-term gamblers. Apply these principles consistently, and you give your skill the runway it needs to produce results.