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I played in a home tournament exactly like this last weekend, 20 players, $25 buy in, one $15 addon/buy in per person that everyone but one person used . Most of the players had very little experience at Holdem, many players would limp in and call raises with practically anything, the preflop raising was rare, almost everyone underbet their big hands after the flop (tons of limpers usually, plus antes, so the pots at the flop were huge, but they'd bet 100 into a 500+ pot), calling down with weak hands etc.
One hand I remember that gives this example well is this one. One guy bets pretty big at the flop, another guy raises, 3rd guy calls, everyone else folds. First guy pretty big again, second guy raises, 3rd guy is pissed and folds. On the river the first guy bets again, and the 2nd guy just calls. The first guy has 2nd pair, the 2nd guy has pocket 2s. The third guy is pissed at the way the 2nd guy bet it, because he folded two pair and thought the 2nd guy had a flush (but there were only two of two different suits on the board). The second guy's reasoning is, "Well I had to stay in, because I could've hit the 3 of a kind". He said that like 3 times, completely serious.
So yeah ... there was absolutely no use bluffing early in this game. I played extremely tight, folded QQ on the flop with an ace on it and one guy betting big (who eneded up having JJ with a set of jacks on the flop, and 4 on the turn). Only hand I won for a while was 66 on the big blind, with a low flop (and turn and river), with a straight draw that didn't hit. I bet it pretty hard, and after the hand one guy was shocked that I won with 66, because "that's not a very good hand". Finally I won a big pot pot with JJ that hit top set on the flop, when the guy to my right bet huge on the flop. Finally a big bet, and I knew this guy knew what he was doing more than most of the other guys. He had KK, another guy ended up being put all in at the flop, and I more than doubled up.
I kept playing real tight, mostly missing flops when I had good cards, until I got down to 6 players where I was the shortest stack. I got ATs here, and had to go all in, and got called by JJ and QT. This is the only hand I really got lucky on all tourney, but it was enough, as the ace hit on the flop and I tripled up, QT went out (for some reason calling JJs bets all the way to the river where he hit a T, and went all in).
Finally I was able to loosen up and I bluffed a lot more, and it worked a lot more often. The biggest one was 56s that I limped in with. The flop was something like J87, two of a suit (not mine). I checked, one guy bet rather big and I called. Turn was a rag, and I checked again, and again he bet and I called. River was a rag, but the flush draw didn't come and for some reason I put him on that. I lead out big on the river and he folded, and I showed my bluff which shocked everyone. May have hurt me in the long run to show though, because I never really hit a big hand after this, so my intention of getting them to call me more often didn't work.
For some reason I think the new players mainly base their respect for you on your stack size. They fold to bets from big stacks, but call bets from small stacks, when really it should be more likely to be the other way around, since the big stack is more likely to bluff big. I noticed one big stack that was basically a maniac walked over my first table for a long time early on.
Anyway, I ended up finishing 2nd, as the guy that won it had a huge chip advantage over me when it got down to two players. I got horrible cards once it got heads up, he wouldn't fold to my bluffs (usually went all in over the top of me every time), and finally I was forced to go all in preflop twice with rags, as the blinds were eating me alive. He called both times, the first I won over his Ax, the second I had 86 to his 88 and lost. It was a lot of fun though.
So ... to make a long story short, when playing a tournament against mainly inexperienced players, I recommend being very tight early on, and then loosening up later when you have a big stack and are nearing the money.
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