Proper bankroll management is a necessary but often overlooked skill in gambling. Players sometimes get too excited about placing bets on promising games that they forget to control their money. More often than not, they do not have sufficient knowledge of wager behavior.
In general, there are two factors that matter most in bankroll management: the house edge and the volatility of the game. In various games, particularly high-level blackjack or poker, payout rates can soar to as high as 99 percent and the house edge (casino profit based on the percentage of the player’s original bet) can therefore be relatively low. The aforesaid games also have low volatility, which is the range between the high and low payouts on the game.
Lower house advantage allows for a more aggressive play as it demands higher profits once the game makes a winning. Volatility acts almost in the same fashion. Low volatility games have smaller differences between the higher and lower wins, allowing for frequent winning. In contrast, high volatility games often have one or two large payouts, but players often have slimmer chances of bagging the jackpot.
For both blackjack and video poker, the “300x rule” must be applied. This rule has it that players must only bet a total of 300 times regardless of the size of their bankroll. For example, if a player has a $600 bankroll, then he must not play with more than $2 per hand. In blackjack, bets can either be doubled or split (to increase the number of bets and lower the risk), and so the 400x base rule may be used instead (same principle, different amount).