Fear and Greed are the main reason of losses - page 2
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Yes these tw are considered main cause of loosing money in foex market for most of the traders. Peole had not patience to collect small amounts. They want to become rich at once . They do greedy trading and some times they loose their earned profit too.
It is important to discipline yourself to manage accurately your plan before starting to trade in Forex market because our plan is nothing when we do not know when and where to stop our trading after making profits. ( I am not telling stop forever but stop after earning profit to avoid to lose the profit you have earned).
We can include this important thing in our trading plan.
So we have a comprehensive trading plan can be used for various scenarios.
Yes i do agree with you fear and greed is the main reason to loose money in forex market. We have control our greed while investment. Sometime over greed make you to loses your money in forex.
The fear and greed in my thinking are the sure way towards failure of the traders in forex trading as both these emotion can spoil the career of a trader we must overcome on these two things.
I agree fear and greed are the main factors why people lose. I would also add impatience.
Most of us trader think fear and greed are 2 most dangerous emotions that is the root of all failure, but we must consider there are more emotions that are contributor of losses in forex, example: - Sloth - people who do not want to learn how to trade the right way, this will result in undisciplined behavior and unorganized trading, this also result in lack of knowledge, approaching trading with greed or naivety - approval addiction seeker - people who cannot decide to take position and need confirmation from other traders - I'm right and the market wrong - this one is ego and boosted by real world achievement, example genius in school. Thinking making mistake is taboo. CMIIW
I think that lack of knowledge is the root of evil indeed. If you read a lot and then discover your own strategy and style you will only need to be courage enough to follow it in every situation and be truthful to yourself when it comes to the money management: if you lose - you lose.
If only trading is as simple as managing fear and greed. A courageous and prudent trader would still lose badly without understanding how the market works. Nevertheless, from personal experience, fear is worse than greed when it comes to causing havoc in your trading. Greed is never a problem to me. My TP is relatively small, and if price goes 100 pips my direction right after it hits my TP, I don't care. I've followed the plan to the letter, and that's what I do as a trader.
Yes these two are very bad emotions to take down a forex trader but there is no short cut to get rid of them quickly either.
Fear and greed are two main emotions that effects trading a lot . Traders are usually unaware that they are present with them .they either loose their amount in making high profits with high risk taking or loose amount due to loss because they again and again close trades at low loss