Why You Shouldn’t Put All Your Eggs in One Basket

Why You Shouldn’t Put All Your Eggs in One Basket

Along with my wife, I have ran a successful online marketing business for the past 6 years.

The reason I’m sharing this with you today is to better understand the importance of diversification when it comes to capital preservation, growth and handling risk.

Learn the skills of managing money, growing wealth and never over exposing yourself to disaster with your job, business and life.

Did you like this video? Want more strategies to manage your bankroll?

Simply enter your name and email on the side bar and get access to my bankroll management spreadsheet,
the same one I’ve used for years to track my progress, accomplish goals, and grow my roll. 

Have questions?
Write to me in a comment below.

See you next time.

Alec

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4 Comments

  • Eddie May 15, 2014 8:55 pm

    Hi Alec,

    I have been playing poker for about 4/5 years and i watch a lot of poker and read a lot of strategy. I have had some good results online and play cash games live and feel that i have vastly improved my game and have played a variety of stakes with success, along with winning a couple of tournaments online.

    I love playing poker and find it hard to put the laptop down sometimes when i play very lengthy sessions, and i constantly find it hard to stick within my bankroll in which i end up putting my roll in games i shouldnt be playing in then ending up busting my account, going broke then when i have money i spin it up again then end up busting it by playing in games i shouldnt be in.

    I would like to know what your best advice is how i can manage my bankroll well as I would love to play for a living but I feel like this is holding me back as it feels like a vicious cycle, although when i run it up i do cash out some of the winnings occassionally.

    Also how many buy ins for a game do you think you need approx for a bankroll?

    I think that I find it hard to play smaller stakes as I love the big action and smaller games I can lose interest, was wondering if you could help me,

    Thanks

    Eddie

    • Alec Torelli May 16, 2014 5:26 pm

      Hi Eddie,

      I hear this so often as it's one of the most common struggles for poker players. Don't worry, you're not alone!

      Keep in mind that perfecting and customizing your bankroll management to suit your particular situation is something that can only be done through experience, a little pain and very specific details of both your life and financial situation.

      That being said, my "broad approach" is that you should have a minimum of 50 buy ins per game that you play. This will ensure you can comfortably handle the swings of poker. Since you've struggled with this in the past you may want to increase that to 100 just to be safe.
      Remember, winning is never as good as losing is bad.

      I totally understand your desire to move up quick and thirst for action. It's part of the game and every pros inner battle. You need to find other outlets for action – I love exercise – and truly enjoy the process of building your bankroll. Like anything in life worth doing, it takes a lot of time and hard work.

      Lastly, to truly understand what kind of swings you can expect to incur, I suggest experimenting with this tool: http://pokerdope.com/poker-variance-calculator/

      Best of luck,
      Alec

  • Reuben Wassell September 25, 2016 10:31 am

    Hi Alec thank you for the opportunity to post, love the videos.
    I have recently built up a bankroll of $500 on PokerStars, which may seem small for some people however for me it is a great achievement early in my poker career.
    I started from $30 grinding 1.50 sit n go slowly increasing the buy ins once it becomes 5% of my bank roll.
    My question is at what point do I withdraw some of the money? I can’t seem to bring myself to do it feeling like I am going backwards by reducing my bankroll.
    Would you withdraw & how much?

    Thank you

    • Alec September 28, 2016 6:24 am

      Hey Reuben,

      Good question. First off, good job on your bankroll management!

      As for the withdrawals, a lot depends on your personal situation.
      How easy is it for you to replenish your bankroll?
      How badly do you need the money in your personal life?
      What are your poker goals?

      Answering some of these bigger picture questions will give you perspective. In short, if you can afford to keep the money in your bankroll and reinvest the profits it will allow you to grow faster. That being said, I’d always advise taking a small percent and locking it away for savings and retirement. Automate your savings to set yourself up for long term wealth and success.

      Good luck to you!
      Alec

      P.S. I talk about this specific subject in great detail in my course ‘Four Step Poker‘.

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