Greedy, Dangerous Diseases for Forex Traders
On this occasion we will explore about one of the main diseases that traders often diidap, both novice traders and who have pocketed thousands of hours of flying, the disease called Greed (Greedy).
Trading psychologists say there are four psychological emotional conditions that influence decision making that most often disrupt market participants around the world. But to make it easier, we will discuss the discussion into several posts.
As an analyst or trader, we should always make the decision as objectively as possible, using a proven method of interpretation of the data and facts presented in the market. We must interpret a news or picture that is on the technical graphics as they are, not what we want.
The market does not know the condition of our funds and does not care about our feelings. So if we let the emotions overly influence our decisions then be prepared to stare at the destruction of our trading account.
But as human beings, surely we can not turn off our feelings, and we also do not have to try to turn them off. So what should we do? It’s clear the answer: continue to learn the psychology of trading so that we recognize negative emotions, some diseases that often hit traders and how to avoid or control it.
Greed makes traders unrealistic
Now let’s talk about greed. The nature of greed or greed is generally regarded as an excessive desire for money and wealth. In the trading world, it is better defined as the desire to get trading transactions that deliver in quick time with unrealistic earnings.
When greed is pervasive, all traders will only concentrate on how much money has been generated and how much more they can get in one or more deals. The mind begins to obsess over the shadows of profits.
However, true there is no real profit there until the trading transaction is closed. For the time being, the listed or imagined is only the potential profit.
Even greed begins to plague the trader before taking the position of the transaction, making it forced to enter the market that actually provides little chance for trading success.
Worse, greed also often causes traders to abandon their own trading system or strategy as well as healthy risk management practices when entering a trade.
Therefore, before commencing the transaction we must constantly remind ourselves not to be greedy, to see what to see, to do what must be done and to always be realistic with the current market condition and always keep the discipline while implementing our trading strategy and plan.