Newcomers and their greediness

Greed is certainly a tough emotion to conquer. In my experience beginner's greed diminishes as one acquires more knowledge and learns more about what profits are realistic and unrealistic.

Greediness is the biggest enemy of a trader.

Greed is the most dangerous enemy for a trader. He should avoid greediness while he is trading if he wants to become a good and profitable trader.

Brank_A posted:
Greediness is the biggest enemy of a trader.

Rightly said!

The moment greed enters your trading cycle, risk increases manifold. Keeping such emotions away while trading is must.

Greed makes us feel emotions that negatively affect trading, so this fact must be taken into account.

There are several ways to take control of your emotions and make sure fear and greed do not influence your trading decisions.
1) Have a Trading Plan
2) Lower Trade Sizes
3) Keep a Trading Journal
4) Learn From your past mistakes

Having a trading plan is one of the most helpful ways to manage the risks and capital in trading.

I always recommend to new trader first trade in major pair. Don’t try other minor pair.

It makes no sense to take a pair that is less popular, because you need to be able to work with it.

Hrenz posted:
It makes no sense to take a pair that is less popular, because you need to be able to work with it.

Traders prefer to trade with major pairs due to volatility issues. Also, there is a lot of information available regarding those pairs.

Sarjohn posted:
There are several ways to take control of your emotions and make sure fear and greed do not influence your trading decisions.
1) Have a Trading Plan
2) Lower Trade Sizes
3) Keep a Trading Journal
4) Learn From your past mistakes

These are some really good tips... How long have you been trading?

any level of newcomers always try to bring profit with no learning , its a very common thing and same mistake newcomers always do . even i did when was a completely new in trading.

Sarjohn posted:
There are several ways to take control of your emotions and make sure fear and greed do not influence your trading decisions.
1) Have a Trading Plan
2) Lower Trade Sizes
3) Keep a Trading Journal
4) Learn From your past mistakes

I would agree with this as long as the trading plan includes lots of learning and strategy development

opportunitycalls posted:

Sarjohn posted:
There are several ways to take control of your emotions and make sure fear and greed do not influence your trading decisions.
1) Have a Trading Plan
2) Lower Trade Sizes
3) Keep a Trading Journal
4) Learn From your past mistakes

I would agree with this as long as the trading plan includes lots of learning and strategy development

I also agree with these points.

The issue is focussing on how much profit they can make rather than how much risk they are taking. One you can control and the other not so much.

Even people trading for years didn't able to overcome the greediness. To overcome it one needs skills and proper trading psychology. It's not easy.

Having a trading plan is absolutely essential, I think this is something most traders miss.
They just keep trading different strategy to different strategy getting more and more confused.

I trading plan separates professional traders from beginners. However, being a beginner means you should always try whatever works for you until you get it right.

This is a complete guide of how to create a winning trading plan:



Good luck!