What a bankroll is and how not to go broke

Your bankroll is all the money you are prepared to risk on betting or trading. Not your salary and not your savings, but a separate amount you could afford to lose. Everything else is measured against it.

Why people go broke

Beginners think prediction accuracy decides everything. But even a good call loses often: if you are right 60% of the time, five misses in a row will happen sooner or later. The survivors are those who can sit through it.

Compare two approaches. Start with $1,000 and lose ten times in a row. Risk 5% of what is left each time and you still have about $600. Risk everything each time and you are finished after the first miss.

How much to risk

• 2–5% per decision. On $1,000 that is $20–50.
• Measure from what you have now. A smaller bankroll means a smaller stake.
• Do not chase losses. Raising your stake after a loss speeds up the losing, it does not win it back.

The maths of getting it back

Losses and recoveries are not symmetrical. Down 50% needs up 100% to get even. Down 90% needs up 900%. That makes big drawdowns more dangerous than they look, and avoiding them matters more than hunting for one lucky run.

How to practise

A habit is best built where mistakes cost nothing. In Bankroll you start small and see for yourself how one oversized bet wipes out weeks of work.