Identify games with the right variance
This simply means that you should look out for games having the right variance. A high variance game can make you rich or poor in a matter of seconds. Low variance games are those that give out money evenly over a period. These games can also deprive you of your funds gradually.
Therefore, if you have set aside $500 as your bankroll (comprising 100 bets of $5 each), do you think a low variance game suits you? Conversely, do you have the risk appetite to absorb a few initial dramatic losses in your game? Let's look at some examples.
You have placed 200 bets, and so far you have lost only 2 units. The bankroll is now down to $490. Here, it seems the variance isn't high and your budget is more or less constant. You can consider maintaining your unit size for the rest of the game.
You lose 20 units after placing 200 bets, and now your net bankroll amount is $400. The percentage loss is 20%. Can you afford this loss? Perhaps it is time to lower the unit size by 50%. It is your decision.
Here, you gain 10%, and your new bankroll is $550. Now there are two options before you. Keep the profit, and start once again with your original bankroll. The other option is treat $550 as the new bankroll and make 10% of this amount ($5.50) as your betting unit.
Now that we've understood the art and science of bankroll management, let's move on gambling responsibly.