Understanding your financial risk boundaries is a very important aspect of trading.

Some people, after incurring losses in trading, keep adding money to their accounts, even borrowing online loans or cashing out credit cards to continue trading, ultimately pushing themselves into an abyss of debt that they may never escape from. Such examples are not uncommon and are very heartbreaking.

Trading may seem simple, but it is actually a significant decision that could change the trajectory of your life. A wrong step not only traps you in a life of failure but may also affect the next generation. Therefore, I always remind new traders - you must be cautious when starting trading; the importance of this decision even surpasses choosing your college major or selecting a life partner.

Before trading, you must set your financial risk boundaries. For example, if you have 1 million, you should invest at most 200,000 in trading; the worst outcome is losing that 200,000, but it will not affect your normal life. This 200,000 is your risk upper limit; never raise it casually, and definitely do not borrow money to cover losses.

Maintaining this bottom line is the first step towards being responsible for yourself in the trading journey.