When there is tons of money out for the taking, adding to it, you have lost more money as well, could you say no or say enough to profits? Well, it’s tough, but you have no other choice but to say NO. This emotion – greed – is the biggest hurdle to your success.
The pitfalls of greed
Greed can make you lose rationality. When you lose rationality, all breaks loose in the world of trading. You tend to catch the falling knife in the hope that it could give tremendous returns. Or you might hold on to trade longer than required only to let go of the gains. At times you might take up a huge lot size on the backing of a so-called ‘fool-proof’ trade. All these situations can trigger another menace fear. So either your greed will let you down, or fear might drive you towards another irrational decision – closing the trade when you ought not.
How to overcome greed?
Here are some facts for you which might help you get a grip of reality. You can neither buy at the lowest point nor sell at the highest point. You might have to miss more pips than your profit. Like everyone else, you haven’t decoded the market. So, there is always a chance for you to be wrong (even the fool-proof trades can go wrong). It takes discipline and a strict system to take down greed.