If beginner traders are unable to manage their finances and risks, yet continue trading despite losses, what will happen is financial ruin. Anyone who wishes to trade must first be able to manage their finances. Similarly, for those who want to invest, managing finances will make it easier for us to know the amount we can use for trading and the amount we will use for living expenses.
But yet, that is where most will get stuck. Managing finances sounds way easier than it actually is. There always are sudden expenses which will ruin the financial planning. Individual really needs to stay dedicated and stick to their planning in order to do so. When it comes to money, people often become careless until and unless they have money. They start getting serious and tend to start caring about money once they see their wallets starting to be empty.
If we have resources, we enjoy them to the fullest. This is common human mentality. Overcoming this mentality is when you become mature enough to handle your finances. Trading is really tricky and can really make you earn stable profits if you have those skills and proper money management methodology. Risk management is actually the key to success in trading.