How to control greed?

[mumuy]

It is a very common problem to the most of the traders i think. To overcome the greed in our trading we must be mentally strong. We must believe that greed will do nothing but harm to our account and we have to avoid that at any cost. Moreover we can take lesson from our bad trading because of having greed in our trading.

I think control greed better way follow money management. If you follow money management then you never lost your money so your greed is not harmful. When you see loss and loss then automatically control your greed and you will be wait for suitable place which you can't face loss. In Forex it is easier to trade profitably but it is most hard to retain your profits, because greed will take over.

So kindly share what are the rules u following to deal with greed factor?

 

[Rambo35]

Greed can be a problem and I agree that most fall victim to it. I also think that most will never be able to handle it and following a set trading plan is what they struggle with. Maybe laziness has something to do with it.

 

[michael77]

I agree with you completely and i believe if anybody follow strong money management then it is possible to check greediness. I would share couple of points over here so that it would help every trader to manage his money in better way:

1. Take small amount of risk or calculated risk in each of every trade you open.
2. Keep it mind it is always hard to recover your lost money.
3. Consider "Risk Reward" as much as possible before opening a new trade.

 

[Rockefeller]

I used to have a problem to take profits too early (fear factor). I think you can control greed by closing half of the position when it reaches your 1 target.

 

[Fxpipper]

Heck yes, greed and the need to maximize profits is a issue all traders face..and as always, some of the trends do not pan out and a retracement kicks in. One way is to develop a strategy and be disciplined enough to stick with it and know when to walk away.

 

[ezrydn]

Allow me to dust off my Ph.D in Behavoural Science for a moment. IF you had no greed, you'd never enter Forex. What are you really here for? What do you expect from Forex? There's nothing wrong with greed. It's what brought you here and now you're touting it's bad? Without a bit of greed, you still be happy in your 9-5 cube.

Not all greed is bad, regardless of the "rules of Forex" or the "enlightened ones." Face it, we're here because we want MORE than what we're getting! Greed played a part in driving me to figure out how to scale baskets. I wanted MORE, just as you do.

I have found there are some core comments in Forex that people parrot without thinking about what they're saying, because it's a "Forex Rule." BS! It's only purpose is to keep you down. When you disregard it, you start thinking about things and end up making them work.

So, an amount of greed is necessary to get ahead in this game. Greed has ramifications. You need to address those 'while you learn.' My 'check points' concept is how I handle those problems. When I have an open road on a trade, I allow greed to take over. My exposure usually increases and I make bank every week.

Being a renegade trader has it's benefits!

 

[Fxpipper]

For starters, call me when the supposed "enlightenment" kicks in..still waiting to get it at a fire sale down here in Missouri..
And on the greed factor, whether we like to admit it or not, we are all greedy but when it comes to trading, you need to be disciplined enough to know how to walk away..
Glad you're making it to the bank..

 

[ezrydn]

No "enlightenment" here. Don't need it and don't want it. And definitely not looking for it. Lots of people have views but most who give "factual statements" don't have accounts that backup their comments. It's just the same old "tow the line, get in step" BS. Their true mission is to keep your head "in the box." While everyone seems intent on telling you what NOT to do, few endeavor to tell you what you CAN do. And friends, it's highly noticeable. It's not Fear or Greed that's keeping you down. It's negativity! You GUARD your money instead of using it. Risk is subjective. It's all in how you approach and view it. How can you be successful at Forex when you're afraid of risk? There are several ways to reduce risk to a minimum. That's ok and expected. But reading the various forums, I see people who are just afraid to trade. And they'll remain afraid until they pull their heads out.

At this moment, I have 3 6-order scales running on XAUUSD, GBPJPY and CHFJPY. That's "exposure," right? It's also at $1100 and building. And, yes, I've given greed the go ahead. I have no greed to control. However, I DO have greed to use.

 

[Fxpipper]

Yup! That's exposure all right.. yeah, all the newbies get the same BS, that's true enough but with valid reason. Most newbies blow out their account in less than a week on account of overexposure..
But regular traders can tone down the "minimize risk" button, at times..

 

[Master Forex IB]

I know the risk of forex market So never try to trade in greedy manner. It seems good to have high profit when market is in favor but we can not control market tend . I try to trade in between the trends and get reasonable profits.

 

[Fxpipper]

Yeah, unfortunately, most newbies walk into currency trading, with unrealistic expectations, dreamy looks, slack jaw, wide eyed look, and an urge to believe in anything that makes forex trading easy, with no effort, etc.
And then, the other shoe hits the ground a few days later as reality slowly starts to sink in..
To all the newbies, do not fall for EA sales pitch, trading is not easy and like everything else, you need to work at it. Sure, you may make a few bad calls, but that's part of the learning process and good luck!

 

[mumuy]

greed is always a killer since you tend to over-trade, instead of gaining a profit you end up losing more.

 

[ezrydn]

NOT all the time and NOT everybody. People, I steer clear of others that like to use "absolutes." All it takes is one being different to shatter their premise. Everyone seems to be so spring-loaded to the negative, I wonder if they even trade at all. It would seem they're too careful and afraid to lose any of their monopoly money.

How many demo accts did I burn through while learning? More than I care to admit, but it was a hellova bunch. And that's how I got to where I am today. I wasn't fearful or cautious. I was in DEMO! Many have forgotten the meaning of the word.

You MUST lose in Demo or you'll never learn! Losing is your teacher, not winning. How do you learn to handle exposure when you won't enter exposure? Self-applied "lock down" is the downfall of most traders I run across.

You have practical and theoretical sides to your brain. Yet, many are afraid to combine the two. I learned one thing (baskets), bought one thing (Forex Auto-Scaler) and then, using both parts of my brain, came up with a workable procedure to scale baskets (my idea).

You got into Forex from a greed perspective. You wanted more money than you have. Greed, plain and simple. Yet, it's a quality everyone says you should fear. Why? It's why you're here, right? Use it! But, in a positive fashion. There's nothing wrong with greed. You just have to understand how to use it, like everything else in Forex.

So, settle for pennies, nickels and dimes. I'm after dollars and not "percentages."

 

[mumuy]

but if you have money to burn then go for it.....

 

[ezrydn]

Mumuy,

Get your head outta the sand! It has nothing to do with "burning through money." It has a lot to do with technique. It's a bit obvious you haven't reached that point yet. You won't gather any new insights because you won't venture out of your "safety" cocoon. You seem to be controlled by Fear. Why is that? What is it that keeps driving you to the dark side?

Forex is dynamic, therefore, exciting. An adventure to behold. But, like anything in life, chances must be taken. New ideas need to be explored. You have to leave the box once in a while. Otherwise, you'll remain a herd animal.

Take what you have and twist it and turn it. Never accept what a vendor says about his product. Why? He is also single-sighted. He only looks at and explains one way. Sometimes, playing "What If," a simple change in an indi, a template or other ideas change a poor product into a better product. No one's gonna do it for you.

Rather than worry yourself about Fear and Greed, many here need to work on their Negativity factor.

 

[reed]

You know, I haven't really reasoned this way on your last line, It all starts form us. Anything that happens just harness the negativity.

 

[Lydia Harison]

Greed is a big problem and its destroy anyone life , try to happy what u have .

 

[ezrydn]

How many here think successful traders "settle for what they have?" I believe success is achieved when you can keep compounding your take. Of course, you've been conditioned to believe that is a sign of greed. You've placed yourself in a self-imposed restriction against success. Why did you enter Forex?

Forex, without rules and taboos, is a wonderful realm to roam in. There's profit at every turn. New ideas produce new income streams. BUT, you can't see it? Why? Self-imposed restrictions. And you end up "settling for what you have." And not acquiring what's possible and available.

 

[ezrydn]

How many of you enjoy listening to "The Piano Guys" other than me? I've been into music since a kid. Music teaches you things about the world. Many composers have made statements tha pertain not just to music bur everything that touches you.

Case at point. The Piano guys do a selection called "Beethoven's 5 Secrets." Music is good and the opening holds the following statement by Ludwig von Beethoven:

"Don't only practice your Art,
But force your way into it's Secrets.
For it and knowledge can
raise men to the Divine."

That holds true for Forex, as well.

 

[AaronTruth]

If you truly cannot control greed then you will love my signals. I trade 1000s of pips with my students per week. We have 13 signal positions at once and catch 2,000 pips per week. I turned $3000 into $248,000 in just over a year. The smallest week was 430 pips on 2 pairs.