In today’s article, I will discuss how to approach a bankroll for small-stakes Texas Hold’em poker and the things you need to pay attention to. I will also discuss what I would do with a $5,000-$10,000 bankroll. I chose this article and bankroll numbers because I feel there is a large population in this range who are unsure how to build their bankroll effectively.
Too many factors are against you when playing with a small bankroll—variance, rake, and game selection. Hopefully, after this article, I will help you brainstorm a plan to build your bankroll.
The Rake
Rake is one of the biggest issues with low-stakes live poker. In a typical 1/2 no-limit live poker game, the average person will buy in $200, which is anywhere from $1800-$2000 on the table. The typical rake is $3-$5 per hand, depending on the pot size.
Let’s use $5 per hand to make it clear how Rake is impacting us. At 30 hands per hour, that is $150 coming off the table. In just 3 hours, if no new money has been added to the game, almost ¼ of the money has been raked by the casino off the table. This severely caps your win rates in these games. If you are playing live 1/3 no-limit, your goal should be to move to 2/5 NL as soon as possible.
Your Bankroll and Low Stakes
Bankroll for live 1/3 to 2/5 games is always an issue. A 10 buy-in downswing of 3-5k is surely possible even for the biggest of winners in the games. A 20 buy-in downswing is also possible, even for skilled players. The lower your average win rate, the greater your chance of one of these larger downswings.
For 2/5, I wouldn’t feel comfortable with a bankroll under $15,000. For 1/3, anything less than a $5000 bankroll is gambling, and likely, 7-8k is the minimum. The point is that minimum bankroll requirements for low-stakes, live cash games are very high. Low-stakes live tournaments are even worse in terms of bankroll requirements.
Your risk of ruin at 2/5 no-limit live with a 10k bankroll is very high. I think your risk of ruin playing 1/2 online is much lower, and you can make roughly the same hourly rate. You will also progress your game much faster by playing in tougher games and learning the proper GTO poker strategy while being forced to study.
All of this is much better for your poker game than grinding 2/5 no-limit. Personally, I am using stats I have from playing on WSOP.com in Nevada. I am fortunate to play on legal, regulated sites. WSOP offers me 33% rakeback and typically runs monthly reload bonuses that boost my hourly rate. While I don’t endorse other non-legal sites, do your own research; there are options for Americans to play on very soft sites.
Conclusion
With a small bankroll, it is important to consider your risk-reward when busting your bankroll and the hourly rate you are earning. You will be gambling on a short bankroll due to variance, but I believe online poker is the best way to build your bankroll. If you are playing online, look for bonuses and rakeback to improve your win rates. If you are playing live, look for promotions and rake to determine where you will play.
No matter what option you choose, playing small takes is a volume game. You need to put in tons of hours and grind it out to build your bankroll.
Best of luck at the table,
Matt
