A personal risk plan puts your bankroll, sizing and stop rules on one page so decisions in prediction markets stay consistent under pressure.
What to Include
Write your bankroll amount, maximum position size, maximum open exposure, weekly loss limit and the conditions that make you pause.
Keeping a Trade Journal
Record each trade: market, price, size, your estimated probability and the reason. Reviewing entries reveals patterns that memory hides.
Reviewing and Adjusting
Schedule a regular review. Change the plan only during reviews, never in the middle of an emotional moment.
Knowing When to Stop
If trading stops being fun or starts causing stress, take a break. Responsible trading tools and support resources exist for a reason.
Worked Example
A plan reads: bankroll $250, max 4% per trade ($10), max $50 open at once, pause after losing $40 in a week. In one week the trader loses $42, so they stop, read their journal and notice most losses came from late-night trades.
Key Takeaways
- Put your rules in writing before trading.
- Journal every trade with a reason.
- Adjust the plan only during calm reviews.
- Stepping back is part of a good plan.