Turning Around Trading Greed

Wherever there is greed, there is a silent danger. Markets show no mercy to whoever has a problem with trading greed. It all comes down to not wanting more than you need or you can realistically target, but that means you need to overcome some psychology.

Trading Greed

Greed makes you act irresponsibly and against any common sense. For you as a trader, this means you're either over-trading, chasing a trade that already left, breaking your money management rules, or holding on to a trade you know you should’ve exited long ago. Let's take a closer look at trading greed.

Greed is psychological

So often we hear that a trader is chasing a round monetary number or a round price on the charts (e.g. 1.100 or 0.900). He will hold on until that number or price is reached, even when that number is beyond the original target he set. Another thing we often see new students doing is that once a trade has reached their set target, they hold on thinking it will continue forever. They dream of spending the money they will make from this forever-move.
What do all these things have in common? They are based on your psyche telling you something. It's called greed and it's dangerous. It will cause unnecessary losses and it will eat into your profits.

Final words

Greed is the reason why you take irrationally risky trades. You want to increase your quality of life without thinking about whether or not the odds are still in your favour. You usually aren’t aware of the coming danger until everything is too late. Greed blinds.
Just follow your system, enter at your planned price and exit at your planned price. You have a system for a reason. It's to make money and protect the capital in your account. The market doesn't listen or care where your psychologically made up targets are and it will show no mercy. So don't give in to trading greed.

#UrbanForex - Be conscious of your trading!