I have noticed that people are advised to gamble with 2% of their income while some said the advised amount to be used for gambling should not be more than 1% of their income.
Trading is not gambling but it is very risky also because most traders are also losing. But with small right strategies and patience, losses can be minimized while profit can be achieved. People think the right strategies starts with the percentage of money used for trading from their income
What percentage of someone's income do you think is advised to be used for trading?
It depends on multiple factors such as how much a person earns, how much they spend on monthly expenditures, and how much they can save from their total income. A person can only use a portion of the savings for extra activities, such as trading, if they are doing it as a part-time thing and aren't planning to go full-time on it. This is also better because, as they say, for gambling, one should only use funds that they can afford to lose; in trading, one should only use funds that they can either afford to lose (if trading futures) or get locked (spot trading) because the market is uncertain and volatile.
If someone has about $200 in savings after all the expenditures and bills and stuff, they can use $50 from that amount for trading, or maybe make investments with it, DCA into Bitcoin, but more than that isn't good because you also need to have some back up, and savings can be a great source of back up for you in emergency situations.