It is a very common problem to the most of the traders i think. To overcome the greed in our trading we must be mentally strong. We must believe that greed will do nothing but harm to our account and we have to avoid that at any cost. Moreover we can take lesson from our bad trading because of having greed in our trading.
I think control greed better way follow money management. If you follow money management then you never lost your money so your greed is not harmful. When you see loss and loss then automatically control your greed and you will be wait for suitable place which you can’t face loss. In Forex it is easier to trade profitably but it is most hard to retain your profits, because greed will take over.
So kindly share what are the rules u following to deal with greed factor?
When you plan before about every step of trading you can control your greed. You should be clear about risk and rewars of every trade. More over stop loss and take profit secures you capital from greed. SL is to control unlimited loss and TP automatically close your profits so that you not remain open your positions.
I agree with rhody. Before every trade, I look at what I stand to lose first before even thinking how much I can earn. That way, whatever happens, I know in advance the worst case scenario.
Then once the trade goes my way, I always try to implement a trailing stop. It reduces greatly the psychological burden of when to take profit! Works very well in a trending market.
For a ranging market, I avoid trailing stops because the moves tend to be choppy.
when I think of greed, I think of setting too ambitious profit targets, or letting my trades run too long. What I do is that I move my stop the more the trade goes in my favor. That way I dont let profits get away and even if I set a too ambitious target, I get stopped out at more realistic areas.
the way i manage to control my greed is simple: i stick to my plan no matter. to me, greed is that voice in my head that tells me to hold on to trades even past my predetermined profit target. i generally view it as being impulsive when i make decisions on the fly, so i always stick to my trading plan.
There’s that, but there’s also the sort of greed that has you locked in pre-trade to how much you could make on a position while failing to consider how much you could lose. This is the sort of greed that leads to trading too large.
Greed is the chief demon in the forex that has tortured traders with bankruptcy. Most scams are as a result of greedy no-edge approaches in the forex. When greedy, traders can only think of how much pips they can win and not how much they can loss. Ohhh, with a leverage of 1:1000, you can control $100,000 with a $100. Waoh that is magical and they forget the risks they expose their account to. Poisonous bonuses are hopefully assumed healthy after all it is free money forgetting they are unhealthy baits. I think if we can control our greed in the forex, we would avoid frauds and there would be no strict need for regulation in the forex. What do you think?
Forex trading ain’t easy when you express this, Forex requirements us to create a concentrate on that using contented with when you achieve this, satisfaction helps beat greed, setting up the quantity of position in order to open in any single day can also be important.
Greed is incredibly bad matter for professionals. I think the best thing is just to get SL and TP inside your orders maybe that could stop an individual being money grubbing and losing your money.
Emotions can’t be controlled, the one who calims to do so is a f wor in gerund liar. Nobody can, even KGB agents has their limits. But you can get some advantage among the herd if you become self aware are start etting consious about yourself and start knowing when you are acting irrationally. You must say to yourself “ok, I am acting stupidly and hence I must get out until I am back on earth again”.
Thinking you can control emotions you will end up with a big hole in your balance and feeling like wanting to commit defenestration. Anger for example, try to control it, it will slowly increase until you blow off. Forget it, it is imposible. The best way to deal with greed is to stop thinking in terms of money but off course it is easily said than done.
Hi,
I just finished a really good program that covered greed and fear in trading at calliara.com In it they said that psychologists are proving that the left side of your brain which is emotional, hijacks the right side of your brain which is logical. This is what causes the problems when we trade. It said that you should set your trading rules, then visualize the trades before they happen to prepare your mind.
I’ve found it really works.
They also said that you can’t fight against it, you’ve got to learn to go with it (by visualizing).
Anyway, hope that helps, cause it’s worked for me.