Some straightforward and easy-to-follow money management rules can immediately help your trading.
Only Risk Money You Can Afford to Lose
This should go without saying, but it is not always followed.
Trading can be risky and you should only risk money that you can afford to lose.
If you have to use money that you should be using for daily expenses, or you are using a loan or credit card, you will be at risk of losing money you cannot afford to.
The other side of this is that if you are using money to trade with that you really need, you will be trading with ‘scared’ money. So when using money that you cannot afford to lose, you will make poor trading decisions and constantly worry about losing.
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