RE: This ONE Simple Rule Will Determine If You Succeed Or Fail As A Stock Trader. By Gregory Mannarino
"Three emotions that run the market. Greed, Fear and Panic." I am a options trader and Gregory is 110% right. His lessons have helped me greatly and I have learned how important tight stop losses are as well capitol management through scaling into positions. It's understandabe why maxing out the initial investment might seem like the right thing to do because is maximizes the potential gain. Being all in feeds the euphoric idea that you can win a substantial gain in a short period of time. The problem comes when maximum loss is not accounted for. Don't forget, you are NOT smarter than the market so prepare for failure accordingly. Also Gregory does an amazing job of setting Price Targets. This is CRUCIAL to success in options trading due to premium decay. Setting a reasonable gain objective and not getting greedy is the only way to succeed in this market.
Do not fall in love with money. Love is blind :)