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.
Given that trading is inherently risky, if a beginner doesn't know how to manage their money but insists on trading, financial ruin could result. In this regard, we certainly need to be able to manage our finances well, and I believe this is a prerequisite for trading to minimize potential losses. In fact, I believe money management is crucial beyond trading or investing, as it can determine our lives.
In any case financial management is a key pillar for achieving goals and it's fundamental to life. It may seem simple but many people don't practice it. So don't underestimate financial management in trading.
In trading besides money management you also need risk management. Money management means being able to manage your money in trading, at least with money you can afford to lose. Risk management, on the other hand, requires knowing how to avoid risks beyond your control (such as news, black swan events, etc.). Furthermore, you need to have analytical skills when trading, such as understanding market movements and potential trends.