3. Evaluate your financial situation: Evaluate your current financial situation, including your income, expenses, debts, and savings. Determine how much you can invest without affecting your other financial obligations.
This is where we're telling that people should only invest what they afford to lose. Because when someone's too hype, they're forgetting things like those savings that they've got that are allocated for other things and the debts that they have to pay first before investing.
Other thinks that it's okay to have a debt while they're invested. They don't realize that they're just getting something from their investments which they're also going to pay to their debts.