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What is greed in forex trading?

页数: 1
Jan 04, 2022 06:47 pm
Lena4030 User

帖子: 41
入会日期: 14/04/2020

Greed is a natural human emotion that affects people to varying degrees. Unfortunately, when viewed in the context of trading, greed proved to be an obstacle more often than it helped traders.

Greed can very easily turn good deals into bad ones and bad deals into worse ones. This article provides a number of tips to control greed and how to stop it from interfering with your trading success.

Where does greed come from?

The phase of popularity through which trading passes today is undoubtedly beneficial for the development of the sphere. At the same time, it has a downside: inflated expectations and unrealistic ideas about the trading process. The popularization of trading through the narratives of quick success and incredible earnings in the short term has pushed many people to a distorted perception of this area. Now, a significant percentage of newcomers expect that they will be able to quickly and easily earn huge sums of money without effort, relying purely on luck and good fortune.

In this state of mind, it is easy to lose your head from the first profits (which can really be the result of one-time luck) and fall into the abyss of greed. It encourages people to strive to increase their profits all the time, not appreciating the intermediate results, not being satisfied with what has been achieved, and not taking into account any risks or other factors that affect the trading process. And while many may argue that this characteristic is rather individual, affecting particular persons, it is still possible to follow a recurring pattern of its manifestation in many novice traders.

Examples of greed in trade:

  • "Doubling" unprofitable transactions
  • Adding capital to winning positions
  • Excess leverage

Greed can change your mental state by using your attention to maximize usefulness / happiness / wealth. The pursuit of these things often results in traders posting trades that they would otherwise never have thought of.


You can learn more about control greed in forex trading at aafx trading.





May 31, 2022 11:28 am
Posuraid User

帖子: 37
入会日期: 29/05/2022

Practicing money management discipline and sticking to a trading plan may help us limit our greed. We must adhere to the take profit and stop loss levels that we have established based on the trading strategy that we employ. We cannot set such thresholds and then let the market to do the rest.

页数: 1