Avoid Greed At All Cost!

Beginner Questions
1

My lessons for today’s trade;
Whatever you do avoid greed.
Don’t over trade.
Avoid revenge trading.
Always use a lotsize that compliments your capital.
Close some positions and set BE on the rest.

So I opened too many positions today on xauusd and gpcad, the setup was good and the trade was finally going well after some pullbacks. But I got greedy and took my eyes of the trade hoping it will hit TP1 and boom it went against me. Long story short, lost half of my capital, SL saved me I would have lost all.
Please adhere to the above

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2

Nothing to do with greed as this is the norm price movements for many trades,and unlucky.

The main mistake is if you lost half your capital, you are not controlling your risk exposure.

You could try bringing your S/L up to breakeven on initial winning movement.

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3

I’m a complete newb but just ready best loser wins and he disagrees with a lot of what you’ve just said…

4

Could you post what Tom would disagree with. Thanks.

5

Unfortunately, it’s such kind of common issue, if we trade here with our personal emotions then surely market will vanished us!

1 Like
6

My life story. But at least you honored your SL. I think in your case it’s more position sizing. The first step is recognizing your mistake and then working from there. Your post here says a lot about you wanting to become a better trader!

7

I think most times it has to do with our emotions which is heavily triggered by or greed most times, we really have to do all we can to control our emotions.
This article might help as a beginner; …How To Invest Money.

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8

There is an alternative solution, because no-one on the planet can switch off emotional challenges unless they are robots. A ZEN solution is to accept emotions but learn to detach our mindset from what is happening to trades, as we have no control over what the market throws at us.

We can either open trades with a S/L & T/P and then turn off the computer. Or, closing losing trades early, never adding to the position, and aiming to nurse winning trades to breakeven, scalping off 30-50% profit and using a trailing stop for the balance. Let it run to whatever profit zone we have chosen.

In other words we have a plan.

9

Of course, quality is my 1st priority! This is why, I usually open 1 /2 trades in a day! That’s it; I don’t need to open so many trades, since a bad trade is enough to kill my profit!

10

Gaga Uh la laaaah!

Caught in a bad romance!

Dont get caught in a bad romance… seems you over traded

It’s better to Accept your entry was not acurate and take the hit! Wait for price to hit the Next target (this pains sometimes, but market Will still be here tomorrow) and only then look for the Next trade.

11

Greed can take over rational emotions making it difficult to process the ongoings in the marketplace. Hence, traders need to find a common ground and gain control of their emotions and move subtly.