🛑 Greed is the enemy of the successful trader 🛑
1. Ignoring the trading plan
Greed drives you to deviate from the predetermined strategy, increasing the size of trades or prolonging the holding period of assets in hopes of achieving greater profits, exposing you to severe losses.
2. Over-leveraging
Your pursuit of quick gains pushes you to use leverage higher than necessary, making every small price movement against you threaten your entire capital.
3. Impulsiveness and emotional decisions
Greed generates tension and leads you to make impulsive decisions without adequate market analysis or relying solely on trusted trading signals, increasing the likelihood of making serious mistakes.
4. Neglecting to diversify the portfolio
Greed leads you to put all your money into a 'promising' asset or currency without diversifying risks; if the value of that asset drops, you face significant losses that are hard to recover.
5. Negative psychological impact
Consecutive losses due to greed generate frustration and psychological pressure, which may drive you to retaliate against the market with most of your remaining money, increasing your damage.
Tips to overcome greed
Set clear limits (stop-loss and take-profit) and stick to them.
Trade based on technical signals and objective indicators, not on feelings.
Diversify your portfolio among assets with varying risks.
Regularly review your performance and learn from your mistakes without feeling regret.
Maintain mental balance by occasionally stepping away from screens and taking breaks.
Greed may grant you temporary profits, but it does not last. True success in trading comes from discipline and risk management.
And making rational decisions away from emotions.