Three Essentials of Investment: Direction, Position Size, Risk Management

There are three pillars to investing: direction, position sizing, and risk management.

With position management, you can't wait until you've lost everything before admitting you're in over your head. If you've already lost a tenth of your capital, you should know whether you're cut out for this.
If losing 10% still doesn't make it clear, it means you had no plan before placing the bet. You didn't think anything through—you were just blindly gambling from start to finish.

Direction and position sizing—two things you may have figured out—but without leverage, you're not getting rich. The limits of your own capital mean it would take far too long.
So what is buying and selling, really? It's a form of time leverage.
Why do merchants obsess over turnover rates and turning tables quickly? Because that's how they lever their time.
Leverage isn't only applied to time—it's most often applied to capital (amplifying spreads and boosting turnover).
Risk management exists to hedge that leverage, and leverage is the inevitable path to growing a small stake into something substantial.

When you follow the rules, you've already lost.
Where you can't see, his win rate is 51% and yours is 49%, and his bankroll is many times yours. Over the long run, you're dead money.
Accept the truth: you simply cannot afford to follow the rules.