Bankroll management is the habit of deciding in advance how much money you are willing to put at risk on prediction markets, and protecting it from single bad outcomes.
What a Bankroll Is
Your bankroll is the amount set aside only for trading. It should be money you can afford to lose completely without affecting rent, bills or savings. Keeping it separate makes every decision easier to measure.
Why Separation Matters
When trading money mixes with everyday money, losses are easy to ignore and gains are easy to overspend. A separate balance lets you see honestly whether your approach is working.
Setting Personal Limits
Decide a maximum bankroll, a maximum loss per week and a point at which you stop and review. Write these down before you trade, not after a loss.
Worked Example
A trader sets aside $200 as a bankroll. They decide never to add more money in the same month and to pause if the balance falls to $140. After a few losing trades the balance reaches $140, so they stop, review their notes and only resume the following month.
Key Takeaways
- Only trade with money you can afford to lose.
- Keep your bankroll separate from everyday funds.
- Set loss and pause limits before trading.
- Reviewing at a limit is a skill, not a failure.