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Market Intelligence › Basic Terminologies
That money, even after earning it fully, your life can continue as normal.
Published by The Retail Trader · JUL 31, 2026 · Trading Psychology
Risk Capital — That money which can be used to keep your life normal even after making full use of it. Trading should happen through this.
This term comes under Trading Psychology, in the section "Relationship with Money". Most of the psychology comes from the condition of your money, not from your chart:
Other terms in this group — understanding them together is more useful:
• Scared Money
• Borrowed Capital
• Emergency Fund
• Position Size vs Neend
• Income Expectation
• Opportunity Cost
• Comparison Trap
• Lifestyle Creep
To read the entire group and all its examples in one place, see the journal "TRADING PSYCHOLOGY: Words from the Mind" - this term has been taken from there.
This entry is for educational purposes only and is not a recommendation to buy or sell. Exchanges change charges, margins, lot sizes and expiry rules from time to time, so verify any figures with your broker or exchange.