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Money as a slow damage accelerator

Money has a unique role in decisions: it's not just a resource, it's an accelerator. When money enters a decision, everything amplifies: potential gains seem more attractive, losses become more painful, and the speed at which damage accumulates increases.

Money as a distorter

Money distorts asymmetry perception. An investment that "returns 20%" seems irresistible. But if to get it you must expose 80% of your assets, the asymmetry is brutal: you're risking almost everything to gain a fifth.

Amplified sunk cost

Sunk cost becomes even more powerful when expressed in money. "I've already invested 50,000 euros" becomes an invisible chain keeping you tied to a decision that isn't working. Money already spent won't return, but money not yet spent can be protected.

Financial margin: the reserve that saves

In the DAMM context, financial margin isn't a luxury — it's a structural necessity. It means having enough reserves to withstand a negative outcome without your life collapsing. Without financial margin, every decision becomes a gamble.

The financial Minimum Move

Instead of investing everything in one direction, the Minimum Move suggests investing the minimum necessary to test the hypothesis. If it works, you can increase. If it doesn't, you've lost little and learned a lot. This discipline is what separates investors who survive from those who don't.

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