Knowledge of basic blackjack strategy is a necessity for minimizing the House edge, and card counters can often knock that House edge out entirely. Another aspect of strategic blackjack play is money management.
Blackjack Money Management Tip No. 1: Set a Stop Loss Amount
If you set a stop loss, you can minimize your losses while still giving yourself the opportunity for a big win. Simply decide on an amount you are willing to lose, for example, $500. If you lose $500 right away, you can quit.
However, once you win say, $1,000, you can still play and decide to quit if you get down to $500. This way, you have an assured win while still giving yourself the chance to win more. If you get to $1,200, you can quit if you go down to $700, and so on.
Blackjack Money Management Tip No. 2: Always have a Reserve
Remember that in blackjack, unlike some other casino games, you may be required to bet more as the hand continues. In order to double or split, you need to put up more chips. If you do not have more chips, you cannot make these moves.
It is strategically crucial that you are able to make these plays at the right times. Whenever you put up a bet, make sure you have enough left behind so that you can split or double if necessary (this procedure is called "splitting your stack"). When it comes to blackjack money management, this is the most important thing to remember. Not being able to double down or split when the odds are in your favor is a major disadvantage for you and an unnecessary edge in favor of the casino.