How can excess greed be controlled?

Henow1969

Well-known member
316 43
Excessive greed is a very dangerous thing in Forex. Because of this extra greed, we often lose our balance. So we need to know how to control excess greed. What steps do you think you can take to control excess greed?
 

GlenGary

Active member
179 3
Greed doesnt exist in Forex, unless of course, you know tomorrows price action today. Over Confidence does however. Your signals should keep everything in check, as they control expectations and outcomes.
 
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tomorton

Legendary member
8,432 1,363
I think greed is hard to define and pin down so its that much harder to resolve or limit or neutralise.

I see greed as just a symptom of fear or a reaction to fear and this helps in various ways. Fear can be a life-saving reflexive instinctive reaction to danger or a threat and in that sense it is a positive emotion. It aids the survival of the individual and thereby of the species. Fear should be the reaction to a predator, the risk of famine, etc.

Greed on the other hand, is an over-reaction to an excess of positive factors - you can't be greedy for more than enough until you already have enough. In this sense, greed to a negative reaction to plenty, and therefore very unhealthy. Greed can better be re-interpreted as a fear of missing out, a fear of losing, a fear of not making enough money , fear of a poor win rate, etc. Greed is, on a sub-conscious level, a manifestation of the fear that there will not be enough - for me.

Re-define your greed as fear and the solutions will be more obvious and effective.
 
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HeavLeighGill

Active member
155 33
I feel like those that get greedy in Forex trading usually learn a hard lesson about it and wind up taking larger losses. Some of us learn from that and it humbles us, others with trading addictions or overconfidence continue to risk too much and lose out on a lot of money because of it.
 

sharabela

Member
73 11
Excessive greed is a very dangerous thing in Forex. Because of this extra greed, we often lose our balance. So we need to know how to control excess greed. What steps do you think you can take to control excess greed?
I think if a trader trades with proper risk management, he cannot be greedy. Having a trading plan and knowing where to set stop loss and take profit are two more things that hold traders back from being greedy.
 
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no_frame

Junior member
47 9
Greed doesnt exist in Forex, unless of course, you know tomorrows price action today. Over Confidence does however. Your signals should keep everything in check, as they control expectations and outcomes.
Exactly how I believe that greed comes from over confidence. Having overconfidence giving you a power to be more greedy than you should be which can result in making wrong move in trading.
 

WalletInvestor

Active member
127 35
There are two things that can help with greed, in my opinion:
1. Making a detailed trading plan with well-defined entry and exit strategies
2. Instead of focusing on the money you make or want to make, focus on how well you can stick to your trading plan.
Essentially, adopt a mindset where the most important things are how good your plan is and how well you stick to it, and the money gains are just a "side effect" of the process.
 
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Manoskript

Newbie
2 0
I believe that the best way to get rid of emotions while trading is to make trading strategy accurate and decompose it in many objective steps or indicators which would asnwer yes/no questions.
 

wmram

Member
61 21
If you find yourself in price structure meant to trap volume, greed is bad. If you find yourself in price movement that looks to have the kind of quality that you would recognize as directional and sustainable, then greed is good. Moves like that don't come along every day. We want to see them when they come, and we want to work that trade as aggressively as reasonably possible.
Seeing what you're looking at, and handling properly ( you're playing a numbers game in a leveraged environment ) is in my opinion far more important than worrying about being too greedy. Greed is good in the right context. Just a word about seeing moves that you'd love to trade; what an easy thing to say. Try looking at mean renko charts; they do a nice job of displaying trending movement.
Keep in mind you're not using these charts for timing so as conveyance of information about what type of market you're in. We want to know when it's ok to be greedy.
 

sebking1986

Well-known member
284 87
Greed in theory shouldn't exist. If it falls within the parameters of your trading plan then it is fair game. However as part of my trading plan I assign certain times of day I will look to trade. If it falls outside of that window I leave it.
 

hazelj80

Member
55 1
Excessive greed is a very dangerous thing in Forex. Because of this extra greed, we often lose our balance. So we need to know how to control excess greed. What steps do you think you can take to control excess greed?
Tamper down your risk. I mean think about it this way.

Look at these prop firms. could you pass any of those challenges? They would not let you lose too much before they lock your account.

My advice before going live is to walk it forward 100 times. If you can survive that and have lower drawdowns, you will be ok live.
 
 
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