This is basically taken straight out of PNL so I suggest you all get it
Chapter: Odds and Outs
Jagsti mentioned this before:
The Four Times Rule.
Odds converted to chance of winning.
Outs on flop x4 = the chance of winning by the river.
So if you have 10 outs on the flop, you have approx a 40% chance of winning by the river.
The Times Two Rule.
It's the same but only with one card to come. So the chances of winning by the next card is your outs x2. Eg: 6 outs on flop, 12% of winning on turn. 10 outs on turn = 20% chance of winning on river.
Obviously this doesn't take into account the times when not all of your outs are clean. You'll have to make educated guesses here. You have to think how many times your good if you hit and multiply that by your outs. So if you're outs are 3 Aces and you only think they are good half the time, you really only have 1.5 outs. But this is more of a feel you need to develop.
Implied Odds.
Implied Odds (IO) come into play when there is money behind. That is to say the bet you are calling is not the all-in bet, there will most likely be bets on later streets. So IO is the ratio of what you can win at the end of the hand vs what you're risking.
Your IO can be better than your
pot odds (PO). Say ur getting 3-1 on a call on the flop with a gutshot, but if you hit your gutshot you'll win much more than what is in the pot at the time you make the call. Again you have to guess and estimate how much you'll get out of him if you hit and adjust your odds accordingly. Say you need to call $1 in a $3 pot, but if you hit you can get another $5 out of him (an estimate) then your IO would be 8-1 as opposed to 3-1 which are your pot odds.
Reverse Implied Odds (or Negative Implied Odds).
Your Pot Odds can also be better than your Implied Odds in the same way. Say you have TPTK but you think villain is drawing. If he hits his draw you're most likely going to lose more bets on later streets. If he doesn't hit, villain will probably fold and you'll only win what's in the pot.
Here the IO offer the same possible win (what is in the pot now) as the pot odds. But there is more potential risk (what you will lose on later streets).
The goal of Pot Odds and Implied Odds is to estimate your Pay Out Odds. Think about what you can win extra if you hit, and estimate what it might cost if villain draws out.
Hope this helps, although I feel kind of dirty doing this because it's basically copying of what is said in PNL
.