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Trading psychology - GREED - A trader's malady

  • #101
  • Jun 3, 2011 4:06am Jun 3, 2011 4:06am
Quote
Trading psychology - GREED - A trader's malady

Greed is malady of humans. We always want more, we almost never happy with what we have and want more, more and more... Faster... Higher... Stronger...
  • #102
  • Jun 3, 2011 7:52am Jun 3, 2011 7:52am
Quoting Fudomyo
There is no such thing as trading psychology.

Either you're a professional or not. The same rules apply to any discipline.

If you're responsible for the roll out of any major venture there is always risk involved in laying out expenses for a potential return in the market.

If you are greedy, afraid, lazy, stupid, arrogant, immature, distracted or unfocused, if you don't have a firm technical understanding of what you're doing and are uniformed about the marketplace, what are your chances for success running any business?

The...

Very Good Read mate...

agreed.. 10000000% ....
  • #103
  • Jun 4, 2011 4:51am Jun 4, 2011 4:51am
When I first started trading on a live account, the old greed demon took hold rapido, I'd be 20+ pips up and be thinking 'come on, just a bit more', to see it drop down to less than 5 pips in profit then into the negative. Making many losses when I could of and should of closed the trade in profit.

Lessons learned quickly I might add.

I started with £500 on alpari, and due to greed, lost over £400 in a short space of time while also testing out strategys that worked for me.

Now this greed monkey never makes an appearance, I've got a strategy that works for my trading style and its proving to be very profitable, With less than the £100 I had left in my trading account, has now compounded to over 2K.

Personally I think greed is the biggest main cause of loss, it was for me atleast.

Good luck to all.
  • #104
  • Jun 18, 2011 10:35am Jun 18, 2011 10:35am
Quote
If you are actually risking your money in the markets, you most
likely are doing so with a strategy that has a positive expectation.
In that case, you should apply money management from the beginning
based on your expected performance. The only reason a trader
should not apply proper money management principles from the beginning
is if that trader actually expects to lose. And, if that is the
case, why trade?

sticky statement.
consider this.
Hero calls followed by margin calls...
  • #105
  • Edited 9:51pm Jun 19, 2011 8:31pm | Edited 9:51pm
Quoting GDR3k
When I first started trading on a live account, the old greed demon took hold rapido, I'd be 20+ pips up and be thinking 'come on, just a bit more', to see it drop down to less than 5 pips in profit then into the negative. Making many losses when I could of and should of closed the trade in profit.
Lessons learned quickly I might add.....
This happens to me a lot, and my mind can vividly recount every time this occurred.
But what my mind chooses to forget are all those times when the market trended far beyond my expectations, and I made far more money by being right and sitting tight then I would have if I had exited at a target.

It's not about greed, it's about surrendering to the market. It's about stripping away my arbitrary expectations of the market and responding to the realities of it. That's why this quote is viewed every day and will be mounted in the wall of my new trading space.

" And right here let me say one thing: After spending many years in Wall Street and after making and loosing millions of dollars I want to tell you this: It was never my thinking that made the big money. It always was my sitting tight. Got that? My sitting tight. It is no trick at all to be right on the market. You always find lots of early bulls in a bull market and early bears in a bear market. I've known many men who were right at exactly the right time, and began buying or selling stocks when prices were at the very level which should show the greatest profit. And their experiences invariably matched mine-that is, they made no real money out of it. Men who can both be right and sit tight are uncommon. I found it one of the hardest things to learn. But it is only after a stock operator [trader] has firmly grasped this that he can make big money. It is literally true that millions come easier to a trader after he knows how to trade than hundreds did in the days of his ignorance". Edwin Lefevre,Reminiscences of a Stock Operator, Pgs. 68-69.
Without VSA, you're playing checkers while the Smart Money plays chess.
  • #106
  • Jun 20, 2011 1:44am Jun 20, 2011 1:44am
Quoting HiddenGap
This happens to me a lot, and my mind can vividly recount every time this occurred.
But what my mind chooses to forget are all those times when the market trended far beyond my expectations, and I made far more money by being right and sitting tight then I would have if I had exited at a target.

It's not about greed, it's about surrendering to the market. It's about stripping away my arbitrary expectations of the market and responding to the realities of it. That's why this quote is viewed every day and will be mounted in the wall of my new...
Thanks for your post.
This is a very important statement imo :

Quote
It's not about greed, it's about surrendering to the market. It's about stripping away my arbitrary expectations of the market and responding to the realities of it

Jonas
Hero calls followed by margin calls...
  • #107
  • Jul 29, 2013 12:12pm Jul 29, 2013 12:12pm
Greed = Fear
Greed = Fear of having not enough ......... a belief in scarcity ... + desire .
Greed is a mixed emotion of Fear of having not enough + desire ...
Life Is Good
  • #108
  • Aug 2, 2013 2:36am Aug 2, 2013 2:36am
Overcoming greed leads to understanding that loss is a relative concept.

so for me main point here is how to balance estranged attitude to profit-making and profit-making itself.
  • #109
  • Aug 2, 2013 3:35am Aug 2, 2013 3:35am
I believe by repeated & disciplined activity if one reaches a phase where they become immune to profit or loss , then greed becomes irreverent .
Most quit/ blow up before reaching 'that ' phase .

This is applies not only to trading , but also to any other endeavor .
  • #110
  • Aug 2, 2013 5:33am Aug 2, 2013 5:33am
i like to share these thougt of mine about trading probabilities and chances of winning

https://www.dukascopy.com/fxcomm/fx-...n=read&id=1467
  • #111
  • Last Post: Aug 2, 2013 5:44am Aug 2, 2013 5:44am
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