One of the biggest emotions that every trader faces on a regular basis is greed.

Greed is an important test of discipline. Expression of greed is expressed in two forms:

⁃ Make additional trades following the trend that is profitable despite the trend being excessively bullish or bearish.

⁃ Implement orders when there are losing trades.

These two forms of greed will always appear in the minds of new traders. They are greedy when trading is profitable and crazy when they are losing.

The best way to control greed in trading is to ask yourself: Is the transaction about to be made part of the trading plan? Or is it just a coincidence and when I get excited I do a little more?

#mia