Every decision you make with your money should be predicated on a well thought out strategic plan using logic and not emotions.

The higher probability it has to play out in your favor the better you can feel about using more capital

For lower probability scenarios you want to reduce your allotment.

When the odds are in your favor you can get away with larger allotments over time

When the odds are against you you need to make sure your risk is low because more often than not, you'll lose.

When you're taking the higher statistical probability side you need to have some confidence in it but it doesn't have to be "perfect"

When you're taking the lower statical odds you need be even more aware of quality over quantity.

You can only get lucky so many times and the house always finds a way to win against emotional decision making.

This goes for all aspects of money management not just markets and not just gambling. Any type of investment or purchase you make.