No-limit Hold ‘Em theory is extremely complex. The fact that you can bet any amount you want to makes for unlimited variables, and few but the keenest math experts can grasp it all on the fly. While it’s tough to do advanced equations at the table, there are a few concepts and numbers that I feel are necessary to compete successfully.

Pot odds are the most important key to any poker problem. Pot odds are represented as a ratio between the size of your current risk vs. the size of your potential reward. For example, if it costs you $20 to see if you’ll win a pot of $100, then you are looking at a 5-1 payout. Your pot odds are then 5-1. Pot odds, by any name, are critical for any investment ideology.

Once computed, pot odds can and should be compared to any information you can successfully quantify. For a simple example: if you must have a 6 to win on the last card, with one card to come, then your chances of winning are about 11-1. (You have one chance to hit one of four cards, taken from 46 unseen cards; 42: 4 = approx. 11 - 1.) If you are being offered a payout of more than 11 - 1, you should attempt to hit your long shot. If you are being offered less than 11 - 1, you should not invest.

To figure your total odds, sometimes you have to take into account the money you might be able to get into the pot on future betting rounds. This is called calculating your “implied odds.” Using the previous example (in which you needed an 11 - 1 payout), if you we were faced with calling $10 in order to win $80, you would fold since your pot odds would be only 8 - 1. However, if you were certain that when your hand got lucky you could get $40 more on the next betting round, you could profitably call the $10; your eventual payout would now be $120 - $10, or 12 - 1. This is why it’s extremely important to observe your opponents. Everyone reacts differently.

At the heart of any gambling endeavor there should be 2 key questions: how much am I risking, and how much do I stand to get paid? Not knowing the price of your wagers will leave you floundering in the dark.

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