In my last $PEPE trade, I lost 0.05% of my deposit. Did this affect me in any way, emotionally or financially? Absolutely not.

But it could have potentially brought (since the full risk on the trade was 0.15%) around 0.25%, which would have allowed me to use that in the next trade and, in turn, increase the profit on the following trade, and so on. Lowering risks during a streak of losses to protect my capital and raising risks during a winning streak (only risking the profit).

In trading, the trader's emotional state is extremely important. Trading with hard-earned money or, even worse, borrowed funds will inevitably affect the trader's behavior during trade execution, regardless of their mental strength. This influence is most felt when closing a losing trade, and even more so during forced closures like a margin call.

That’s why it’s crucial to first protect your own capital and aim to transition to trading with profits made from previous trades. This helps reduce the emotional impact and removes the emotional component from trades, leaving only calculated decisions, probability games, and risk management.