What is money management? Money management is about deciding when one should leave
the game. Does money management strategy apply to poker? Bankroll management and
money management is the same thing. You should always be smart with your bankroll
management just like you would manage your money in real life. Bad bankroll management
has hurt thousands of poker players including some of the biggest poker pros in the game.
If you are up, you might ask yourself: "Should I quit now that I am up X dollars?";
"Am I up because I have played well and I am stronger than my opponents?" or
"Am I up because I've gotten some good cards?" Conversely, if you are down, the questions
might be, "Should I quit now that I am down X dollars?"; "Am I down because I am weaker
than my opponents?"; "Am I down because I have played poorly"; "Am I beating myself?" or
"Am I down because of truly bad luck?"
The size of your chip stack should not factor into your decision. The amount of chips
in front of you is immaterial. Consider your play versus your opponents. Poker is about
beating your opponents in the hands to come, not the hands that have already passed. In
poker, real money management is not about knowing when to leave the table, but knowing
whether to join the table in the first place.
The bottom line is if you are playing well and are a better player than those at the table,
then stay in the game regardless of whether you are up or down. If you are not playing well
or if your head is just not in the game, then you should leave the game regardless of whether
you are up or down. This is smart bankroll management. It is important to understand how to
perfect bankroll management so that you can play the game smart.
Remember that a losing player will always lose. Given enough time, he can burn through a
bankroll, regardless of its size. Only play with a bankroll that you can afford to lose.
Keep your poker bankroll separate from monies needed for living expenses, emergencies, etc.