Bankroll Management 101: How to Use Loss Limits

There are many bankroll management strategies that anyone can try. There are bankroll management strategies that are free and there those that require a bit of cash. You might have even seen one advertised in a web page somewhere while you were surfing the net. There is no such thing as a bankroll managing plan that will work for every player and there isn't any that can truly guarantee profits every time.

Bankroll management strategies have two objectives: first, to ensure the progress of your winnings, and second, to minimize your losses. This means that you take certain steps so that you keep as much of what you win. This further implies that you protect your bankroll from the long-term effects of a casino's house edge.

One of the simplest ways to manage your bankroll is to set loss limits. By putting a ceiling or a limit to the amount of your losses you are able to protect your bankroll and ensure that you have money to play another day. With loss limits, you are better able to determine when to quit for the day and how long do you keep playing.

Setting loss limits can be combined with other bankroll management techniques. Once you have set loss limits you may integrate other principles or safe practices to make up a foundational bankroll management plan. You may include other ways to track your winnings and your losses. Setting loss limits is a practical yet adaptable bankroll management technique.

Let's set a very simple example to demonstrate how loss limits help players as a bankroll management technique. Let's say that you're playing in an online casino. You have around $400 in your account and you have an extra $100 from a bonus you just won. That gives you a total of $500 as your bankroll for the day. You then set your loss limit for that day at $500.

Let's say you spent all that money and ended up winning $30 more. You now have $530 as your total money. However, your loss limit will remain at $500 the next time you play. Let's say you kept on playing with a $500 loss limit and lost $100. You don't include your $30 winnings in any game you will play. You just keep playing until you lose the entire $500 you had to begin with.

An important reminder when you set loss limits is never deposit or add more cash to your bankroll when you lose money. You should also set your loss limits to only a fraction of your entire bankroll, which is unlike our example. Loss limits protect your bankroll and lets you keep whatever winnings you make.