This is a personal note about the rules that I must comply in any circumstances on my high-risk investment / trading. I learned it the hard way.

1. Never put money that you can’t afford to lose.

When it comes to high-risk trading / investment, always assume the worst! That you can lose 99.9% of your money (if not 100%). So never, ever, put the money that you can’t afford to lose.

2. If you can’t comply the rule no 1, you should never join the market.

I can’t emphasize it enough. You are only in control when you know that it’s ok to lose your money. You are not in control when you put more than you can afford to lose. Once it happened, your emotion will take the control of your decision, your logic doesn’t really matter anymore. Many bad decisions are made when emotion take over.

3. Treat it as a long game.

Take profit, but don’t lose all of your position. Buy more, but don’t lose all of your budget. Stay in the game.

4. Don’t be smart.

You can’t outsmart something illogical. No matter how smart you are, market can always act in the opposite way. Trying to outsmart the market is like trying to influence a cockroach by speaking to it. You may be able to predict the cockroach movement, but most of the time it won’t be accurate, let alone lecture it.

5. Don’t make decision in the midnight.

In midnight, your emotion is stronger than your logic. So if you think to make a decision at midnight, better to wait until the next day when you wake for your sleep.