How to control greed?

[e_abrams]

I think it depends on the person. Some people just have confidence in excess and could use a little fear. For others, however, it would be detrimental, as you said.
I agree though, the ideal scenario would be not to think about the money at all, but I am not sure whether most people can implement it in practice. I confess I've never been able to.

 

[Lacquer]

When you have a plan for every trade, you won’t experience emotions like greed or fear. A trading plan involves setting ‘take profit’ and ‘stop loss’. If you have smartly set the TP and SL in your trade, then you will make decent profits from a profitable trade and fewer losses from an unfavorable trade.

 

[Lewis Capaldi]

It’s not easy at all, since it’s a volatile market & every single pip can brings you more money! But in this case, money management plan can save you; expecting more money without proper game plan is an illusion.

 

[Forextobe]

I think it comes back to having a tight trading plan. When you do you have no room for greed. It has to be semi-robotic. You need to know your SL, TP and management and not deviate from them at all. Trading is an industry of probabilities if you're susceptible to greed it means your management is too loose imo

 

[Oakum]

I wish there was a switch in our bodies to turn on/off our emotions, but there isn’t. Trading with greed or fear is a recipe for disaster. There is a reason why experts stress trading with a plan because they know when traders deviate from the original plan, they lose more often than not. There are different forms of greed in forex trading - overtrading, overleveraging, chasing the markets, or holding trades that traders should have exited a long time ago. Traders should avoid doing such things because it will only lead to losses in the long run.

 

[Serenity]

Common ways to control greed while trading-

1) Make a trading strategy and follow it.
2) Do not trade without a plan. Have some predefined trading rules for yourself .
3) Use stop loss and limit orders
4) Have a risk management strategy and take minimal risks.
5) Don’t over trade

 

[e_abrams]

I think it comes back to having a tight trading plan. When you do you have no room for greed. It has to be semi-robotic. You need to know your SL, TP and management and not deviate from them at all. Trading is an industry of probabilities if you're susceptible to greed it means your management is too loose imo

I agree. A trading plan - a prudent trading plan - takes all this into account. A good trader has the discipline to follow their plan to a T.

 

[Flophouse]

We read so much about people losing to the market because of their greed. But honestly, I don’t think any of us realizes what it means until we face the same. Instead of getting stuck with your theoretical knowledge, you must work on obtaining practical knowledge on a demo account and then, on a micro account to know what it feels like to lose your money and why greed can result in you making wrong decisions.

 

[e_abrams]

I think practical and theoretical knowledge go hand in hand. You can't have one without the other, so both are equally important and must not be overlooked.

 

[Resolve]

I think practical and theoretical knowledge go hand in hand. You can't have one without the other, so both are equally important and must not be overlooked.

We will need to make a balance between them so that we are able to do our trading with profits.

 

[e_abrams]

That is my point exactly. You can't really practice without knowing the theory and knowing the theory alone is not enough to profit.

 

[alzheimer]

It is a very common problem to the most of the traders i think. To overcome the greed in our trading we must be mentally strong. We must believe that greed will do nothing but harm to our account and we have to avoid that at any cost. Moreover we can take lesson from our bad trading because of having greed in our trading.

I think control greed better way follow money management. If you follow money management then you never lost your money so your greed is not harmful. When you see loss and loss then automatically control your greed and you will be wait for suitable place which you can't face loss. In Forex it is easier to trade profitably but it is most hard to retain your profits, because greed will take over.

So kindly share what are the rules u following to deal with greed factor?

You just set daily target and pursue them and also restrict potential loss. I make it a function of my equity in order to keep it flexible

 

[BritneyHolden]

You just set daily target and pursue them and also restrict potential loss. I make it a function of my equity in order to keep it flexible

It is also important that a trader carries his/her trade entirely based on calculative technical analysis and stick to the trading plan.

 

[Rendezvous]

There is no instant way to control greed. A good trading plan can be helpful. However, you should find what works the best for you.