Trading is a mental game.

If you want to excel in this endeavour, your mindset must be at peak performance.

But if you borrow money to trade, you erode whatever edge that you might have.

Here’s why…

Trading with borrowed money = Money you can’t afford to lose.

And when you trade with money you can’t afford to lose, you make poor trading decisions because you have the “I can’t afford to lose” mentality

It's like going to a casino with your rent money. Suddenly, every bet feels like life or death (because it literally is).

So, what do you do?

• You shift your stop loss because you don’t want to take a loss.
• You take tiny profits because you’re afraid of watching them turn to losers.
• You average into your losers, hoping to catch the bounce and recover your losses.

(It's like on a diet but eating "just one more" slice of pizza... then another slice... then the whole pizza because you've already blown it anyway.)

Eventually, your poor decisions catch up with you, and you lose everything (including the money you borrowed).

Now you’re worse off than before because not only are you broke, you’re also in debt.

The bottom line?

Trade with money you can afford to lose—and your decision-making will be clearer than my balding forehead on a sunny day.

Cheers

Rayner "the-shiny-forehead-trader" Teo

P.S. Once you have surplus, then you're ready to trade. The next step? Equip yourself with proven trading strategies. Here's how.