Risk tolerance and risk capacity are not the same thing.

One is what your gut can handle. The other is what your account can afford. On this episode of Markets and Mindsets, Paul breaks down two concepts most traders either confuse or ignore entirely. Risk capacity is how much of your account you could genuinely watch disappear before you start questioning everything. Risk tolerance is the emotional response, what your gut is telling you in the moment. Getting these two aligned is where most people struggle. Want to be on the show? Send us a question, a voice note or a quick video to [email protected]. Subscribe to Markets and Mindsets for more conversations exploring the psychology behind better investing: https://www.youtube.com/playlist?list=PLJbqf88SUrRE Disclaimer: This podcast is provided for educational and informational purposes only. The content presented is not intended as personal investment advice or a recommendation to buy, sell, or hold any particular securities or investments. #TradingPsychology #Investing #RiskManagement #TradingMindset #IG #Shorts #StockMarket #InvestingPsychology #TradingDiscipline #PositionSizing