Almost the same principle that applies to gambling. People see to forget all the safety measures and warnings way too often. They look to make quick profit or willing to risk large amounts without having the right knowledge.
Greed is something which if not controlled could be dangerous and can have many adverse effects of it. Be it financial, mentally or in relationship it can have the ill effects of it. Also be it trading or gambling, only invest or play with the amount that you can afford to lose as it is not easy to make money from it. Trading require skill and patience to get it right and those who cannot manage it better to stay away from it.
Number one golden rule: Invest what you can afford to loose. Curtailing greed and practicing self discipline is the key to becoming successful in trading as much as getting the requisite skills. When i trade, I focus on my set target with stoploss, at 5 - 10 percent profit, I am off. I don't mind the ride
Stop loss is recommended but only to those people who do just actively trading up but for long term holds then it wont really be that relevant.
Of course we should really put up on our mind that we only invest on the amount that we can afford to lose since we know on how unpredictable
this market is. When you are just starting up then this wont really be a simple journey, im not saying that this cant really be mastered but
it will surely takes a lot of time and engagement before you can grasp this one.