I have autism, so I have things going round and round in my head and this phrase really winds me up.
It starts of by presupposing you are going to lose. Sure, if you trade Forex, use leverage or basically gamble with options.
The true phrase should be “Never invest more than you can afford to ignore”. Here’s why, if you buy stocks, for instance, you buy one hundred shares in a company, but the shares go down so you are not in profit. If you bought Bitcoin or another crypto too high and it falls what to do?
If you did not trade with leverage but simply bought the stock or crypto you still own it. So just hold it and keep investing and building your portfolio.
- Do not use devices like options that may land you badly in debt if they go wrong.
- Build a portfolio, despite how much you see on Facebook telling you to put everything into GameStop, spread your risk across different things like stocks, ETFs etc. I have quite a large portfolio. On average it is making about 2%-3% a month. However, I monitor it, if a large rally happens on a device I consider closing it and selling the stock.
- Set targets and stick to them — I have some wild targets but I will close those trades and sell the stocks when I get to those targets, regardless of how many millions people say they will go to.
- If they say to the moon, you’re generally getting in too late.
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