Thanks to the rise of online poker rooms, a totally new type of poker player has emerged. Most of the time these are young people from any corner of the world, who appear out of nowhere only to work their way up from the lowest stakes to the top in no time. These prodigies achieve in a matter of two or three years what took others half a lifetime to do in the old days.
However, the career opportunity that online poker offers through its constant availability demands a whole new set of requirements of the players themselves. If you want to advance in the world of online poker, you don't only have to be a good player - you also have to be a good manager, your own manager.
The buy-in for a tournament should always be looked upon as an investment, just as if you were trading with stocks. You only buy when there is promise of a certain return on your investment and if the risk is limited to a reasonable degree. In poker, this can be achieved through bankroll management.
Bankroll management will help you identify how much of your poker money you can invest in a tournament, in order to find the right balance between your desire to...
- make significant progress and a reasonable profit if you win
- avoid falling back too far and losing big chunks of your poker money when you lose.
Your bankroll is your asset, which you have to invest wisely in order to advance. You naturally want to win big when you win, but you don't want to take too much of a hit when you lose. This can be achieved by following the '2 percent rule'.
Never spend more than 2% of your balance for a single Sit and Go (excluding rake).
You get this 2% by dividing your account balance by 50. Though it might sound exaggerated, this buffer is really necessary.
And what is this rake we are talking about anyway? Your buy-in to a tournament is almost always made up of a part for the prize pool and a fee that the poker room keeps, which is called the rake or entry fee. If the entry to a tournament is advertised at $1+$0.15, this means that $1 of your buy-in will be put into the prize pool while the poker room keeps $0.15 for itself. The first figure here is important for your bankroll management: only play the tournament if you have at least 50 times this amount ($50 in this example).
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