If you play online poker and keep track of your statistics then you are familiar with Return On Investment or ROI. This has to be one of the most overrated statistics in poker.

Here is how ROI is calculated: ROI=((Prizes-Expenses)/Expenses)x100. (Expenses includes buy-in, entry-fees and an average estimated number of re-buys)

Lately, I have noticed several people, during online tournaments, giving players a hard time because they have a negative ROI. This particular statistic does not entirely define how successful a poker player is. It is only one element in the equation.

Why?

Because ROI does not take into account cash game play or how often that players cashes in tournaments. Most poker players realize that you can have a bad run and not win a tournament for quite a while not matter how well you play. I prefer to look at ROI more like a pitchers ERA. The fact of the matter is that a pitcher can have a very low ERA and still have a losing record if he does not get good run support. The same thing applies in poker with a little twist.

When you consider ROI and notice that it is negative the first thing you need to do is look at the players In The Money (ITM) percentage. This is a much better indicator of how consistent a player cashes. If a player is cashing 10%+ then you can consider them a good player. If they are cashing at 15%+ then they are usually excellent players. Now when you think about ROI in this context and see that it is still negative that points to one thing. That players hands are not holding up during crunch time or they are have not won a big tournament.

Once you have some breathing room and your ROI is 100%+ then you now have enough time to build on that win and continue to stay in the black a longer period of time until you can take down another one. Bankroll management is still key but you should be well on your way to a healthy bankroll and your next big tournament win with a little luck.

Take a ride out to www.officialpokerrankings.com and take a look at some of the top online poker players and compare them to some of the more obscure but good players ROI’s and ITM percentages to give you a better understanding of this concept. Remember, you are just one big win away from having a big bankroll and building it into a very profitable opportunity for your poker game.

Good luck at the tables!

Curtis III