Don’t risk more than you can afford to lose – quote

Probably one of the most popular and important quotes in investing, it is impossible to have a discussion with investors and traders without hearing the quote at least once in a while.

Trying to find the person who first said this quote is impossible, as this quote have existed for decades. However, an author of the book “The Backroads Bosslady” have been trying to give credit to herself, by posting the quote and referring her 2 year old book as origin of the quote! Obviously it’s plagiarism, and cheap marketing.

Don’t risk more than you can afford to lose – quote

So what about the quote itself, what does it mean really? It is obvious, taking risks can result in a total loss of what you are risking, whether it is money, health, trust, freedom, chips, time, people …

In trading, usually people are greedy, and due to market fluctuation, and financial instruments like leverage which allows traders to trade x times the amount of stocks they have, and thus allowing them to make x times the profits or x times the losses, being greedy can lead to losing everything invested.