Psychology of Greed in Currency Trading

When ever Greed Hits You

I understand when I am trading when greed has strike me and wants to take over. I have these mixed feelings of excitement and elation and so matters. The sense I get makes me personally believe I am incapable to be wrong. In fact how can I be wrong when the previous one, two, three four or more trades have gone my way. My spouse and i is on a spin, invincible. Then greed moves in. I move my position up a little, then I have a wider stop because it doesn’t matter anyway after all I am not able to be wrong. I actually even look at coming into trades which are not strategy set ups. fusionex

At the time you get the feeling of invincibility in trading and start getting the energy and doing the actions layed out above then it is important to stop. Avarice may take over in one second and send you in a spin which can certainly wipe out any winnings or worse still reduce your equity contour to zero. 

Dealing with Greed

Most of us face situations in our lives when we need to offer with greed. This does indeed not have to correspond with money. Indeed there are issues with being money grabbing around food, possessions, time with individuals and so on. To deal with the whole issue on greed could take time and would require a huge amount of writing space. I am going to stick with the concern of greed when it comes to trading. While i speak about trading it can refer to forex, options, futures, stocks, commodities, directories and any other financial instrument. Listed below are my 6 techniques for dealing with hpye in the trading environment that I will discuss further.

Only ever transact your Strategy
Stick to your needs Trading Guidelines
Only risk between 1% and 3% depending on market conditions
Always have your Position Size in accordance with your Risk
Be Regular
Do your own Examination
Only at any time trade your Strategy

We have an outstanding mentor who has shown me several strategies regarding trading. We tested these strategies to determine if they worked well to me and I could use them to go with my trading schedule. My spouse and i is using one of the strategies for a much more longer term approach which can net between 90 and 500 pips in a weeks worth of price action. If My spouse and i do not see a trade that is to establish with my strategy I just do no trade.

The financial markets have been around for many years and i also am sure they will be rounded to get more to come so as long as you know you can get a good number of pips from your strategy a month then there’s no need to force the trade. To me I actually do not want to stress out and transact all day, every day so my strategy is great for me.

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