April 15 - A number of poker strategy articles deal with the topic of bankroll management, and they tend to be repetitive. They'll tell you never to risk more than a certain small percentage of your total bankroll in any single session or tournament, and they'll feel that they've said something profound. It's nonsense unfortunately, and this anecdote courtesy of the late great Pug Pearson will show you the light.
Full disclosure: I stole this anecdote from an Andrew Beyer book. He in turn purloined it from Jon Bradshaw who wrote about it in his own book. He in turn listened to Pug Pearson whose wisdom is the source. In this Internet age one doesn't have to worry with footnotes or endnotes, why the difference between fiction and fact is now considered irrelevant so long as it entertains.
Pearson was about to tee off in a high-stakes golf match against three other players who were all better than him. When asked how he could possibly win Pearson responded, "You've got to take into account the human element. Hell, I know them old boys; I know them real well. And I know their choking points - the point where they begin to cut their own throats."
On the 18th Pearson was level with them. He asked the other three if they'd like to press and double the size of the wager. They all agreed. One after the other they hit awful tee shots and Pearson went on to wrap up the win.
Past a certain point money management takes a back seat to your own personal choking point. There are players out there who feel nothing risking $10,000 on a bet when they only have a net worth of $10,000 and there are multi-millionaires who will start sweating with $500 on the line.
In poker it is essential to know yourself and the boundaries of your risk tolerance, but if you want to win big it also becomes important to work out whether your opponents are about to reach their own choking point.
