Monday, November 10, 2008

Moving up levels

Well, I have moved up to the next higher level of SNG starting this week on Sunday, and so far I am really enjoying myself. I look forward to moving up to the next level, which I plan on doing in the very near future. The secret to building a bankroll and maximizing profits is to continually move up or down as the case may be to maximize results.

People often say don't be results oriented when playing poker, but that is not what I am talking about. If we set a guideline of moving up every time we got to 30 buy-ins at the next level and moving down when we were at 30 buy-ins for the level below the one we are at, then we should have a nice way to judge our results.
The problem with many people is they become too comfortable at a given level of play. They get used to losing the amount they lose when they don't finish in the money and moving up is uncomfortable for them because they will lose more obviously and that can tend to take bigger chunks out of the bankroll.

I did an analysis where I took 25% return on investment at the $16 level and compared it to 15% ROI at the next higher level of $27 and you actually do better at a 10% less ROI at the higher level, granted it is only .05 cents, but it emphasizes the point that even though we don't do as well we make up for it by the higher buy-in.
Now, if we were getting 10% ROI at $20 that would be $2 per game played. Now compare that to 10% at the $100 level and that is $10 a table. It does not take a math scholar to see that we want to get to the highest level of play as quickly as we can while maintaining our winning edge.

Playing 4 tables at a time averaging 10% ROI would yield $10.80 an hour playing at the $27 level, which is better than minimum wage and not bad for a part-time job from home. Now, move it up to the $38 level and it is $15.80 an hour. Now that is a nice little job on the side. And if we dreamed a little bigger the $114 level would be $45.60 an hour, which is a livable wage by anyone's standards.
We must constantly move up if we are to achieve our dreams. All the while realizing that it is the ROI% that is important to maintain. Many pros are perfectly happy with 7%, and in today's economy that is not a bad return on your money.

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