Millionaire Tradersfind a way to grind out profits consistently. He feels that one of the
biggest mistakes is to trade only with money that you can afford to
lose. Of course, he is not suggesting that everyone should mortgage
their houses and trade with money that they cannot afford to lose,
but what he is telling us is that every dollar, yen, pound or euro is
hard earned. If you are trading with money that you can afford to
lose, then it means that you are trading with money that you feel
is not important enough to be protected. The money you trade
should be viewed as potential wealth later on in life. Therefore,
before risking it in the market, you need to make sure that you are
risking it in a smart way. You only want to apply it to strategies that
have already been battletested rather than just jumping into the
markets on a whim.