How to overcome greed in dealing to Forex? - page 2
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Have a clear trading plan that follows exactly what you want to take out of your trading. If you're looking to pay the bills from trading, stop or go into advanced money management techniques once you have made enough money to cover the bills. If you want to make an extra 100$ a month, do that. Etc.
There is no "one fit all" answer to your question. It depends on your style, your strategy and your goals in trading. Only you can answer it - and then it's just a matter of following your rules!
If you cant control your emotion and greed then just forget about forex. Because emotion and greed are not allowed for trading principality.
greed can be control if you make a plan , set your goals and decde your profit and loss targets. be patience you can get reasonable profit without doing risky trading,. When we loose patience want instant and high profits it convert into greed we forget our risk management rules.
Planning helps to reduce greedy steps of trading . A trader will remain contented on limited amount of profit after taking this he will close position .If he had no plan or risk management thinking he will do emotional trading and try for more and more with open positions.
It is common for the trader to become greedy in dealing to Forex. How to overcome it? Do i need to stop trading when i hit my target in dealing to forex?
In Forex trading, it is difficult to define what greed is. If you are doing very OK in trading foreign currency on a very particular day will you stop because you already earn some or will you continue because you want to earn more. It is just like answering what is morally correct and what is not. In some places, there are actions that are morally right but to other place such actions are not. Same thing in Forex trading.
Simply : do not trade. Sooner or later it will get you. The question is if greed is going to win or common sense. If greed wins you are a gambler. If common sense wins, you are a trader
Simply : do not trade. Sooner or later it will get you. The question is if greed is going to win or common sense. If greed wins you are a gambler. If common sense wins, you are a trader
Perhaps greed is a way too personal. As what I've said, it would depend on how would you define it, referring to yourself of course. The question here is not greediness but instead if you are profiting in the trading. I think it would be OK to become greedy esp if you are doing OK in your everyday trade.
According to some studies, 90% of all orders are positive at some moment and only then they are reverted to negative.
Greed is making them negative. The story is simple : you set your tp and it gets hit. But the price goes further in the direction of profit. And then you start to think : next time my tp will be higher. And then you lose. Keep your tp realistic and fund your account with enough money for what you want to earn and then there will be no problem. As soon as you set the target too far, you will lose
Markets don't always offer chances to make money when you use a specific trading style/system. But when the markets make money available you should grab as much as possible. The money you make during good market conditions is the buffer when you trade in bad conditions. Therefore do not stop trading when i reach my weekly/monthly profit targets.
If you adhere to your rules for position sizing and your entry/exit rules then i wouldn't see trading after reaching your targets as greed.
Mike
If you are in a business of making money then you have to know that you are greedy. The only thing is to be less greedy than the majority : I have been reading that Buffet was making 30-40% a year. See where is he now.