IMO, MTT play is so vastly different than SNG play that i would recommend the micro MTT's ($1-$3), it may take a while of playing MTT's for you to make any significant cash and as you say your bankroll may not be able to sustain more, not to mention the experience is invaluable. If players are going allin because of the cheap buyin, let them, simply fold unless you have one of the top 5 or 6 hands (fold to an allin that is), and if you feel like gambling with something less maybe even a few other hands (just wouldn't get into the habit of doing that with a bankroll that can't support the variance of taking high risk preflop gambles).

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At what point do experienced players feel they are getting too far behind the chip leaders and that they must 'open up' a bit to stay in contention?


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This is a common mistake. Don't concern yourself with keeping up. Play your game!!!! If you starting worrying about what the chip leaders or even the avg stacks have, the next thing you know you are trying to force yourself into bad situations. Just simply use your own skills.

I would aslo recommend reading HOH 1 & 2 if you haven't done so already. Must reads!!!!