Question

Explain this, "Invest what you can afford to lose"​

Answer 1

Answer:

If you lost something that you can't afford to lose, then it would greatly affect you. If you lost something that you can get again, then it wouldn't be as bad but it still would affect you. Say you invested your money into buying 30 stocks, each stock costed 12 dollars, and the next day it went down to 11.5. You only lost 15 dollars total. But if you spent your money on more stocks, you would have lost more money.