Overcoming greed

[wagtrader]

Hey everyone, how do you overcome the greed that makes our profits vanish, I mean the greed that stops you from closing a trade when the profit is actually reasonable.

 

[Enivid]

You overcome it by setting a take-profit or trailing stop beforehand.

 

[thomas_novak]

You overcome it by setting a take-profit or trailing stop beforehand.

Could clarify on the trailing stop, what does it mean ?

 

[Enivid]

Could clarify on the trailing stop, what does it mean ?

https://www.earnforex.com/guides/forex-definitions-stop-loss-take-profit-and-trailing-stop-orders/

 

[ankita_gokhale]

I think it's the most concerning term here.

 

[AlexOZ]

Clearly define your entry and exit rules, sizing, stop loss, and take profit settings of an order before entering a trade and stick to those rules while the trade is running.

 

[Ara]

Always set take profit(TP) for your trades. This is how you can overcome the greed.

Hey everyone, how do you overcome the greed that makes our profits vanish, I mean the greed that stops you from closing a trade when the profit is actually reasonable

 

[Haruto]

Hey everyone, how do you overcome the greed that makes our profits vanish, I mean the greed that stops you from closing a trade when the profit is actually reasonable.

Actually, initially I used to retain a trade until it hit the TP. But majority of the time the scenario turned out negative like the trade went near the tp but the market reversed destroying my profit. As I was the sufferer to this issue, now I developed a thought that I should close a trade even if it doesn’t hit the tp but in reasonable profit.

 

[thomas_novak]

Clear exit points prevent greed from causing us to hold trades for too long, ensuring we secure reasonable profits.

 

[Oli_jackson]

It is all related to the psyche. Just seeking more and more from the same position without being realistic about it can be a serious misstep and cause you to lose even the profit you had made up to that point. So, set your TP, and if it hits be happy and content about it.

 

[CallahanSinclair]

As the others believe in taking profit(TP) , I also agree with it . And maintaining discipline and sticking to a well-thought-out trading plan can be effective tools in keeping greed in check.

 

[Antho]

Hey everyone, how do you overcome the greed that makes our profits vanish, I mean the greed that stops you from closing a trade when the profit is actually reasonable.

Personally, I think the most effective way to combat greed in trading is to rigorously follow a well-defined trading plan, setting specific profit targets and stop-loss limits. This disciplined strategy is crucial for making decisions based on logic rather than emotion.

 

[Phill88]

Clearly define your entry and exit rules, sizing, stop loss, and take profit settings of an order before entering a trade and stick to those rules while the trade is running.

Totally agree. Consider regularly reviewing and adjusting your trading plan based on market conditions and staying informed about relevant news and developments

 

[Benjifxfreak8696]

This is when you realize that risk management does not go one way.

 

[Resolve]

This is when you realize that risk management does not go one way.

We must make such Efforts so that the risks present into our trading will also get reduced.

 

[Zerologic]

Greed should be controlled because many traders have proven that greed is often to be reason for big losses in forex trading. Using the smallest position size does have a small potential gain but it is a lower risk I think.

 

[Tradevern]

I know it can be difficult but set clear profit targets, from what I've seen disciplined traders mostly outperform others. Use trailing stop loss and also consider the 1% rule, which means risk only 1% of your capital per trade.These are personally tested and highly effective. I am sure they will help you out!

 

[Zerologic]

I know it can be difficult but set clear profit targets, from what I've seen disciplined traders mostly outperform others. Use trailing stop loss and also consider the 1% rule, which means risk only 1% of your capital per trade.These are personally tested and highly effective. I am sure they will help you out!

Yes, I agree, discipline in controlling risk according to rules such as 1-2% can help at least maintain an account in the market dynamics that are sometimes unpredictable. Apart from risk mitigation, profit targets are also to be a concern.

 

[fargana]

I know it can be difficult but set clear profit targets, from what I've seen disciplined traders mostly outperform others. Use trailing stop loss and also consider the 1% rule, which means risk only 1% of your capital per trade.These are personally tested and highly effective. I am sure they will help you out!

Yeah rule-based trading is superior to any intuitive and chaotic approach. Profitable gambling can't be sustainable so any deviation from the rules should be avoided at any cost.

 

[Milo_fx]

Totally relatable. What’s helped me is setting a clear profit target before I even enter the trade and sticking to it no matter what. It’s so tempting to let it ride, but I remind myself that a reasonable profit now is way better than risking it all for a little extra. Discipline over greed, always.