3BlackCrows
Corporal
- Messages
- 83
I never understood the statement 'only trade with money you are prepared to lose'
While sound in a theoretic sense it makes no sense to me in the practical world.
Think about it:
If you can afford to lose that money, how will you treat it? What will be your values associated with that money?
Will you risk more, enter extremely higher risk trades and trade illogically knowing that it doesn't matter if you win or lose your account because you were simply doing what was advised?
Subsequently what would be your attitude if you knew you couldn't afford to lose it?
Would you risk less? Trade on lower leverage, and only take trades that have a high degree of success?
I'm not saying you won't blow your account trading like the latter.
Nor am I saying people should gamble with their life savings or mortgage money but at the same time I hate losing money (though I am prepared for losses) so I when I do lose a trade I want to make sure it's as little as possible.
I've found that people respect their property/money more if they've worked hard to earn it whereas people who have things given to them on a silver platter tend to respect it less.
Any thoughts?
While sound in a theoretic sense it makes no sense to me in the practical world.
Think about it:
If you can afford to lose that money, how will you treat it? What will be your values associated with that money?
Will you risk more, enter extremely higher risk trades and trade illogically knowing that it doesn't matter if you win or lose your account because you were simply doing what was advised?
Subsequently what would be your attitude if you knew you couldn't afford to lose it?
Would you risk less? Trade on lower leverage, and only take trades that have a high degree of success?
I'm not saying you won't blow your account trading like the latter.
Nor am I saying people should gamble with their life savings or mortgage money but at the same time I hate losing money (though I am prepared for losses) so I when I do lose a trade I want to make sure it's as little as possible.
I've found that people respect their property/money more if they've worked hard to earn it whereas people who have things given to them on a silver platter tend to respect it less.
Any thoughts?