Greed in trading mean that an individual is never satisfied with the amount he earns, he want to earn more and more and in that hope he does loss making trades and ultimately lose money in the market.
Greed arises in following situations,
- When there is a chance of earning a more than losing less
- When one consider himself the best sport person
- It tend to not satisfied person with smount he earns
- He forget that market will not only give money but also takes money
- When he or she consider himself greater than market itself then Greed overpowers the strategy and psychology
- No trading roadmap
How does Greed look like?
- In greed, the person earns a descent money but still take a trade to just check or earn more money
- In greed, person does not book his profits at high prise in hope of getting more money and lose the money sometimes getting exit in losses
- Greed is persons thinking that there is a chance in market to earn money and i am losing it, called as FOMO fear of missing out.
- Greed also comes with the desire for earning more and more in a very less time.
- Greed never comes with slow growth of money. But it comes with the hight growth in less time that impress individuals socially help him getting praise by other people.
Why people are not able to control or manage their greed in trading?
Because their mental abilities are creates by social environment that you need to get success as quickly as possible.
One sees that everyone is growing more than him, every one is successful and consider oneself a slow person looks like a failure. So he want to live that life as early as possible.
So this creates a strong desire from his mind heart and social conditioning. That this becames issue for you to manage.
But remember, this isnt issue at social side. It is individual desire to earn for showing to other people. See how i earn easily money right and you are not able to earn this much. This satisfied your ego, self respect and feel larger than life. This is what the expectations are of average loss making trader.
Greed is not easier to manage because it is deeply rooted in how we perceive ourself as a good trader, best or worst one. It is also individual approach to trading some are trade for money, some trade for earning huge money as easier money option as gambling, some do as strategic approach.
This becomes a full beaviour change approach towards the trading right. So it is not that easy to change. But still you can change it only by modifiing thinking and aligning yourself with market conditions.
Steps of control Greed In Trading?
- First fix your minimum profit from a trade if that reach then exit the trade. If you use more quantity then fix your first targer for 50 percent booking, second and third target as quantity. So you will grab a portion of market without losing everything.
- Try to trade the market when you are emotionally silent and calm. Avoid market when you are excited or energize mentally. As this causes randome trades. Focus on yourself before taking trades. As you can also do a meditation for 30 to 40 minutes before starting a trading.
- Mind control is simple task for controlling the greed. But it does not only by remaining calm. You need to answer the questions from your mind like how much you want to earn, when you stop and how you see and what is your approach to the trading.
So, the main point is that, everyone has this problem, it is not only you. Right, everyone handle greed in different way but the solution is only one for all of proper approach to the trading as mention above.
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