Quote from: deisik on Today at 12:49:28 PM

Quote from: Bright_dhykseen on Today at 12:22:41 PM

Quote from: deisik on June 04, 2020, 08:18:16 PM

Well, there's another rule (actually, two rules). It mostly refers to investing (if we consider it a different effort), and it is Warren Buffett's invention. So here are the rules:

Rule 1: Never lose money
Rule 2: Never forget rule 1

If we draw an analogy here, it is not so much about trading the money that you can afford to lose but rather not losing whatever money gets traded. If you follow these two simple rules, you can trade as much money as you want (more money means higher profits)

Probably this applies when your position is in profit

It's six of one and half a dozen of the other

If you are in profit, you are "in the money" (using the futures market parlance). If you are losing money, you are either breaking the rule 2 or, if you don't forget it, the rule 1. But that's not the point here. The very idea that you should trade only the money you can afford to lose is stillborn, and for a reason. You trade for a living, and that means this rule is meaningless as you could just stay away from trading altogether instead. Warren Buffett with his wisdom hit the nail on the head and got it right 100 percent

Lol i got your point