Things are not always what they seem. The rules prop firms have are calculated to give you the least chance of walking away with any money. I cant begin to imagine how many traders have lost their money due to rule violations which on the face of it seemed easy enough to get past.
When I started, I was trading with a small account for a few months. I didn’t increase the capital in one go. I just gradually added funds as I made profits and that is the best approach in my opinion. In that way, you won’t be risking too much and your account will grow consistently. Risk management is the key element no matter how big or small the account is.
When you are confident enough on your own trading skill, then surely you can deposit here the big amount! But if you deposit here any large amount with an ordinary trading skill, then surely you’ll face a hug loss! That’s the reality!
There is a very thin on confident and overconfident. One should be very careful about that.
I would say, it is better to not go down that road. Do not think about how much profits you would have made if you had traded with a bigger amount. Since, we don’t think how much loss we would have suffered if we had traded with a bigger amount when we encounter a loss. Unconscious greed often leads to many conscious mistakes. You can increase your capital whenever you feel comfortable enough to risk more money. Until then, just focus on learning and improving your skills.
When first starting out in trading, it is always best to start small. You can increase the amount once you have sufficient knowledge. Greed can only result in losses.
It sounds like you have a good mindset regarding risk and that will probably take you a long way. I also started with a really low amount (around $10). Deposited $100 very shortly after, I know that isn’t considered a lot but it was to me at the time. About four months into trading, I was doing okay, so I made another $500 deposit. Again, not a huge amount, but I was a stay at home mom so it felt like a ton!
I think this comes when you are doing very good at trading. With good profits you get stuck into unconscious greed to get more and more. So we should have our limits as to when to stop and get out from the trading.
Greed is a factor that causes many forex traders to lose a lot of money. New traders frequently ignore the significance of trading psychology. Many indulge in overtrading. They often take up trades just because they look good, deviating from their original strategy and trading plan. In the case of trading, we need to establish some guidelines and adopt a disciplined approach.
Nothing but losses come from greed. For this reason, if you want to trade successfully, you must control your greed and exercise patience.
When you have the money spare I guess or your success rate is high. I went in big lost what I couldn’t afford but taught me lessons I now use
Whether it is unconscious greed or conscious one, you cannot succeed as a trader because of this mindset. Sticking to what you have planned is crucial. We have a habit of ‘a bit more’, which ultimately leads us to unconscious greed. Plan and stick to the plan.
Like all emotions, greed can be managed and controlled. It is possible to execute trades without letting greed get in the way if you put the necessary time and effort into it.
@Xianglu345 True! Having a greedy mindset when trading can be disastrous. Don’t bring this up in your business. It can cost you a lot of money.
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Greed manifests itself when traders add more funds to winning trades or over-leverage in order to profit from minor market movements. So, stick to your plan, be patient, and avoid the rick quick mentality.
Greed only results in losses & drives traders to take more and more risk in the expectation of earning more profit.
As a beginner how should I avoid it ?
When we have a myth in our minds that ‘the more we trade, the more we will get’, we are swimming in a world of greed unconsciously. Greed always is a result of our dissatisfaction which ultimately stems from the belief that ‘when I’ll profit, I’ll be happy and satisfied’. In this process, a trader concentrates on the profits and not how to trade.
Greed keeps you trading in every wrong manner. You have to mend your ways before it gets too late for you to recover from your losses.
Having a definite plan helps to avoid unconscious greed in trading. You’ll be able to get rid of your greediness if you stick to your trading plan.