Determining your Limit and Bankroll Size

Money management is an essential skill for any gambler. As such, maintaining an ideal money limit level and bankroll size should be a constant priority for any poker player. If you’re a beginner, it’s highly recommended that you give these issues serious consideration before playing for any real money.

What level or limit should I be playing at?

As a beginner, finding the perfect money level is not a simple task. You will probably go through a bit of trial and error before finding just the right one. However, before you consider playing at a certain limit, you should ask yourself a series of questions.

1. If I lose the money that’s in front of me, will it be a significant hit to my bankroll?
   In general, it’s recommended that you play at a level that doesn’t do significant damage to your bankroll. A good rule of thumb that some players follow is the 5% rule. If any single tournament or cash game risks more than 5% of your poker bankroll, you’re probably playing at too high of a level.
   
   
2. Do the pot sizes at this level make me too emotional?
   Playing at a level where you find yourself scared to go all in or call a large bet will have you not playing your “A game”.
   
   
3. Am I slightly uncomfortable at this level? (is it challenging enough)
   If your goal is to improve your game and eventually move up in money level, I would recommend finding a level that makes you slightly uncomfortable. Playing at a level that is too small for you will typically have you calling down bets that you normally wouldn’t, or playing too many hands because … “heck, it’s only X dollars”. Also, poker still needs to have an element of challenge and thrill, and if your level of play is too small, you won’t typically find it there.
   
   
4. Am I willing to accept a “learning curve” at this level?
   Each limit level brings its own unique set of challenges, so you should be prepared to sometimes go through a “learning curve” when playing new levels. If your bankroll cannot withstand a few losing sessions, the level is probably too high for you.

How big should my bankroll be?

While there is no “exact” right answer for this, there are certainly some good general guidelines to follow. The last thing you want is to lose money you cannot afford to lose, or put yourself on the sidelines because you spent your remaining free money.

1. How much can you afford to lose?
   The simple fact of the matter is that most poker players lose money (especially new ones). You should only play with money that you can safely lose. NEVER play with your rent money, borrow from others, etc.
   
   
2. Don’t listen to what your other poker playing friends say about their bankrolls.
   Bear in mind that some of them may be playing above their own bankrolls. Two hundred dollars will be peanuts to one person and a week’s work for another. Don’t worry about other people and find an amount that feels comfortable for you.
   
   
3. Are you playing tournaments or cash games?
   Remember that tournament players quite often don’t make money as consistently as cash game players. It’s not uncommon for tournament players to go several tournaments without making a dime. You should prepare for this by keeping an adequate bankroll.

Final thoughts

Money management is an extremely important aspect of being a winning poker player. It’s an aspect that should never be overlooked. Finding a limit and bankroll size that don’t put you in too much financial risk, while allowing you to be comfortably challenged should be a constant goal for any poker player.