Bankroll Management: The 1% Rule

One of the most important things in this business is know bankroll management.  We’ve touched on it a bit in previous articles, and more will follow, but it cannot be overstated how important this concept it.  You need to be able to weather the storm.  Part of bankroll management is determining your standard bet size.  Your bankroll is all of the funds you have set aside for action.  And nothing more.

There is a lot of math in this business.  For the purposes of this article, we are going to show what is considered the standard, which can be described as “The 1% Rule”.  Ups and downs are inevitable.  Seasoned veterans know this, and have experienced both highs and lows.  It isn’t uncommon to win, or lose, several bets in a row.  Recreational bettors typically do not even consider this theory, and quite frankly, it doesn’t apply to them.  They simply decide how much action they would like to have on a particular game, etc.  But professionals know the importance of standard bet size to their bankroll.  

The 1% Rule is simply betting 1% of your CURRENT bankroll on the action of your choice.  Just because it is a “big game” doesn’t change the bet size.  That is a trap aspiring bettors frequently fall into.  Also note that we said current.  If you have a $10k bankroll, that means a standard bet size is $100. If you lose a few bets and your bankroll is now $9,700, your new standard bet size is $97.  Discipline is key here.  Many bettors have lost their bankroll chasing bad bets with larger action only to lose their entire bankroll.  

Professional poker players understand this as well.  The WSOP has held $1M buy-in events.  Even the top professionals who CAN post the prestigious buy-in don’t use all of their own funds.  Instead they sell shares via sites like YouStake or Stake Kings.  It should be noted that even for the $10k Main Event, several players sell stakes to raise funds.

Following the 1% rule allows a bettor to ride out the inevitable bad string of losses.  We feel a constant understanding of your bankroll is paramount to being in this business for the long haul.  

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