Exactly, when we invest with an amount that we think we will lose or lose, it will make us always optimistic and don't care about falling market conditions, investors who expect big profits because they invest with everything they have, so when they see a red market, they immediately sell in panic. .
When you do invest only on the amount that you could afford to lose then you wouldnt really care much nor get stressed out when it comes to possible market conditions since you do know into your mind that you wont really be wrekt out totally once the market goes down and thats the advantage when you do limit out yourself
when it comes to finances and investment. You should be wise on spending and managing things and wont tend to go overboard on something that
you cant bare if anything goes wrong.