19/01/2023
Trading is a mental game.
If you want to excel in this endeavor, your mindset must be at peak performance.
But if you borrow money to trade, you erode whatever edge that you might have.
Here’s why…
Trading with borrowed money = Money you can’t afford to lose.
And when you trade with money you can’t afford to lose, you make poor trading decisions because you have the “I can’t afford to lose” mentality.
So, what do you do?
You shift your stop loss because you don’t want to take a loss
You take tiny profits because you’re afraid of watching them turn to losers
You average into your losers hoping to catch the bounce and recover your losses
Eventually, your poor decisions catch up with you and you lose everything (including the money you borrowed).
Now you’re worst off than before because not only are you broke—but also in debt.
Do you want this to happen to you?
Then, don’t borrow money to trade.
Repeat after me…
I’ll never borrow money to trade!
Cheers and stay safe,
Trade-A-Thon
