Trading Psychology: GreedGreed is known as one of the most dangerous emotions in trading. It is mostly caused by a streak of wins or by success. You will feel like you are mastering the trading Greed also occurs when you are trading without a plan or a target. With a target, we mean a realistic goal which is truly achievable. Don't set goals as a new Ferrari in 1 year or something, as it isn't realistic. Set goals as; Buying a new Mac Book in a couple of months, or anything like that. Trading without a goal is just as driving without any destination. You must stay disciplined and focused as a losing streak can occur-just as fast and simple as a winning streak! A lot of greedy trader's jump in with extra position size when a trade is going in their favor, they are simply taking more and more risks to satisfy their greed. Even the best traders can be brought down to the bottom by greed. A lot of amateur traders think, that if they can make 30 pips on a small lot size, they could have also Furthermore, greed is caused by being grounded and the lack of setting proper trading targets. When you set up your actual target with a proper plan, you won't be Greed can also be accused by overconfident traders! When you feel overconfident, you are more than likely going to forget about all danger and traps in the market. No Get rid, if you aren't already’, of the "get rich quick" thoughts and start realizing that trading is a long term game which gives you enough probabilities to make a decent income from it. If you are using a decent risk management, in combination with a decent trading plan you will become profitable in the long-term. Never forget, out of 1000 trades with an 80% success rate, there are still 200 losing trades. It's simply impossible to predict if the price goes in the wished direction. ”Greed does not rest until it is satisfied, and greed is never satisfied" Trading Psychology: Greed Trading Manual Part 15 was originally published to: www.onlinereviewnetworks.com via Blogger Trading Psychology: Greed Trading Manual Part 15
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