Common money management pitfalls of poker players

Poker is not a sport wherein you solely play for pleasure. In Poker, you play to win and to have more money in the end. Hence, management of finances is very important. Sometimes, financial management can be more important than the player’s skill in Poker. A person’s financial management can either earn him additional money or can put him in debt. Some Common Money Management Pitfalls. There are some good poker players that end up broke despite their skills because they didn’t manage their finances well. Some pitfalls made by these good poker players in managing their finances are:

1. Playing beyond their means - Obviously, if you play, you have to ensure that you only play within the amount of money that you have. It may be a foolish idea to hope that you will win and bring home more money. For instance, you have $1,000, it is a terrible idea to play at $20/$40. There is a very high risk that you will lose all your money in one game. It is recommended that you set aside a certain budget that you can use for the game so you know what your limit is. Once you already exhausted your budget, then quit playing. You have to control yourself to quit playing. Remember that although Poker is somehow based on skills, at the most part it is also a game of chance.

2. Playing in the pit - Pit games are games that are completely based on chance. An example is craps. It is not a good idea to play on these games as you have no control on winning the game. It is a complete waste of money since the chances of winning is really miniscule.

3. Playing in games that have significantly higher bets that what they are used to playing - Alright, so you are willing to take the risk? Is it worth it? No. For instance, you generally play in the $10/$20 or in the $15/$30 games and then suddenly you see a very attractive $30/$60 game with a $15/$30 sucker. The first thing that you have to consider before playing in the game is your competency. Of course, the players in the $30/$60 game can be more experienced and skilled than you are. This is the main risk to consider. Playing on a big game can sweep all your profits that you have accumulated for a period of time in just one day. The risk is too high that you will end up losing your money instead of winning. The best thing to do if you really want to move to a game with a higher bet is to do it gradually to test the waters before your completely plunge.

Risk Management. Money management in Poker is all about risk management. It is like investing wherein you have to calculate the risks versus the profits. You need to gain an understanding of the situation before you make the final decision. However, in Poker, you have to be more cautious as the risk is really high. Do not be too confident on your skills.

Published on 11/27/2009