Risk Capital
a.k.a. Risk money
Money you can afford to lose completely without hurting your life, the only money that should go into…
In plain English
Money you can afford to lose completely without hurting your life, the only money that should go into speculative trading.
Risk capital is money you could lose entirely and still pay rent, eat and sleep at night. Not your emergency fund, not your house deposit, not borrowed money.
It is the first rule of speculation for good reason. Trading with money you cannot afford to lose changes how you think: every tick against you feels like a threat, and fear starts making your decisions for you.
Keep this word for good
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