𝗪𝗵𝘆 𝗯𝗼𝗿𝗿𝗼𝘄𝗶𝗻𝗴 𝗺𝗼𝗻𝗲𝘆 𝘁𝗼 𝘁𝗿𝗮𝗱𝗲 𝗶𝘀 𝗳𝗶𝗻𝗮𝗻𝗰𝗶𝗮𝗹 𝘀𝘂𝗶𝗰𝗶𝗱𝗲 (𝗾𝘂𝗶𝘁 𝘄𝗵𝗶𝗹𝗲 𝘆𝗼𝘂 𝗰𝗮𝗻)
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 = Trading with 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.
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
Eventually, your poor decisions catch up with you and you lose everything (including the money you borrowed).
Now you’re worst off than before because not only are you broke — you’re also in debt.
Do you want this to happen to you?
Then, don’t borrow money to trade.
Repeat after me…
I’ll never borrow money to trade!
