This is the most important concept of investing. You should never place an amount you wouldn’t be ok losing. If losing every cent of an investment could cause financial ruin, you’re investing too much.
This is the most important concept of investing. You should never place an amount you wouldn’t be ok losing. If losing every cent of an investment could cause financial ruin, you’re investing too much.
I am not OK with losing the money I have invested, but it is so unlikely that I do not need to worry about it.
A situation where the global stock market crashes, and never recovers, is basically an apocalypse. That is not worth planning for.
This is all a big gamble with different risks. But generally: if you have “money” you have a risk to lose it.
I use here ““Money”” as a synonym for buying power, or value that can be exchanged. So it is not like Money because it dose not describe the meta value and is part of the big gamble ;)