Quote:
staking is something I've never done and always been quite sceptical about as to why winning players would want to play for only 40-60% of themselves.
would be interested to read more pls
Quote:
Originally Posted by Z06Fanatic1
The biggest issue to staking is why would a player need to be staked if they are capable of winning at a reasonable ROI? If someone can't grind up a small roll why would I assume they could grind up in higher stakes/under my supervision?
A lot of people see staking as a way of fixing a sinking ship.
This is why successful players tend to neglect staking, even if it could help them to achieve life goals. In addition, many potential backers never buy shares because they doubt the sellers’ competence.
I will go into detail later. Meanwhile, here are some examples.
The first one is obvious. You have a bankroll of $30,000. However, you are playing 1,500 AFS tourneys with $100 ABI. Let’s assume your expected ROI is 25%.
There is a 5% chance to lose $30,000 over a 1,000 tourneys.
There is an 11,5% chance to lose a half of your bankroll.
You may take the risk or you may sell 30% in stakes, reducing the risk of ruin to zero.
The second one is also obvious. You are crushing $30 ABI and want to move to $60 ABI. You play well, but moving up in stakes means more risk. Why not share it with backers during a couple of months at new stakes?
The third example is more interesting and I’m going to revisit it later.
Imagine you have a goal – to put aside a significant sum, let’s say 300 buy-ins, by the end of the year. For example, there is a child on the way, you think of buying a car or just climbing the stakes and setting aside a reserved bankroll. Moreover, your yearly spend is 300 buy-ins. In total, you need to make 600 buy-ins and not a dollar less.
If you play 3,000 tourneys a year, you must score a ROI of 20%. Any downswing is an end to your plans.
Staking is the only way to reconcile the risks of poker and the pragmatism of life.
There are other reasons to sell shares, but here are the most common:
1. reducing risk in expensive 1000+ player tournaments
2. compensating the risk of increasing ABI
3. life planning
I would put the absence of bankroll to the very end of this list.
P.S. I apologize that I cannot respond to you immediately, will reply to other questions tomorrow