Greed is an emotion that is very natural in every human being which sometimes causes disaster in future life. In a trading platform, it’s not unnatural to be tamed by greed as there is ample opportunity of earning money here. It is greed that turns many good traders into failure. It works as a hindrance in the way of successful trading. There may be a chance of a winning trade, but traders often do mistakes out of greed and ended up losing that winning trade. Traders should control their greed if they want to stay longer in this forex trading platform. This article will help you to control your greed and tell you the way of achieving success by getting rid of your greed.
How does greed make hindrance in trading success?
Greed means the intense desire for achieving something materialistic. Human generally possesses a strong desire for wealth and power and it sometimes causes destruction. You are on the trading platform for earning money and it’s your goal to attain success. Your desire for earning money is not wrong until it turns into greed. When a person fails to control his emotion, it becomes very hard for them to decide what is wrong and what is right. The same thing happens with the traders when they forget to control their greed. When a trading decision is taken out of greed, it hardly bears any positive result and traders must face a big loss for this.
Greed not only destroys you financially but also ruins your mental peace which diverts your focus on trading which led you to a constant loss in your future trading. Greed is proved to be a threat to your trading account. The tendency of making more money inspires you to double down, adding too much capital to winning positions and taking over-leverage. All these things will result in a margin call or can lessen account equity.
Example of the impacts of greed in trading
Suppose a trader enters a long position without a stop, hoping that the market will become uptrend, but the market moves lower which places the trader into a losing position. At times, rookie UK traders become so blind that they start to trade in the opposite direction to the trend.
Eventually, they keep on losing money by betting against the trend. To avoid such a problem, visit the official site of Saxo and learn more about trend trading and reversal trading strategy. Soon you will learn to avoid greed and eventually you start taking the trades with logic.
Some ideas to control greed at the time of trading
It is possible for human being to control their emotions. They can take a control of their mind by developing the discipline within them. When a trader learns to think in a disciplined way, greed won’t take possession of their mind and they can make the decision which is right for the trade. Greed takes place in the mind which is not disciplined. If you observe the traders who are successful in the trading platform, you will find them all disciplined which is not seen in many new traders.
Traders should stick to their plan that is to set stop loss and take profit carefully and should try to not make any change in their plan. You should remember that if you once fell on the grip of greed then it will be hard for you to recover from your upcoming loss. Do not make any change to your trading strategy with the hope of earning much money. Good traders always give importance to these factors and maintain a strict trading rule.
Always try to be emotionally balanced so that you can deal with your greed. The traders who are conscious about the consequences of greed in the trading platform, never allow their minds to make any place for greed. Controlling greed is not an impossible task and by developing discipline you will be able to trade without greed.