In the other thread, gergery wrote:
Quote:
That match your definition of bankroll?
It's pretty close to mine. To me its all about Pain management. Bankroll is basically what i'm willing to lose before it causes me some pain. first level of pain is having to drop down in limits. that causes financial loss in forgone income, and often ego pain of playing lower stakes or doubting confidence. next level of pain maybe is getting staked or shiftin money around -- some would have to ask wife to let them shift money to poker, or move $$ from mutual funds, some would get staked. All of those have costs associated with them. next big level is life changing -- having to get job. i think it comes down to magnitude of impact, both finacially and emotionally, and its not smooth but stairstep-like.
There are limits i play that i am bankrolled for and could finanically withstand 10 or 20 buyin swings at but 1) it cuts my financial safetynet/reserve too much, and 2) where i'm unwilling to fade say a 100k+ loss emotionally. so most think of bankroll as purely financial but thats not true. I also merge all money into one account in terms of how i think about it. it spends the same and invests the same so i treat it as one and look at ROR calcs on that.
lol, yes it is tedious. its funny that so many understand exactly how often a flush draw will hit or the importance of mixing up your play yet not understand how much a sample mean can differ from population mean, why Cero's 60 hands are the wrong population to examine, and what kurtosis does to BUSTO calculations. But as they say, you make your money from others mistakes so i don't complain.
-g
Matt adds:
Definition of kurtosis:
http://en.wikipedia.org/wiki/Kurtosis