Thanks for this informative post! I believe emotions will always be a part of trading, but you should learn to control them. You should have a set of rules for yourself that can prevent you from taking uncalculated risks provoked by fear or greed.
Traders aren't aware of the implications of their greed until they are faced with them. New traders are first focused on making large sums of money, believing that taking a large number of trades will help them make money. They become rash in their trading and continue to enter and exit positions without hesitation leading to blowing their accounts and eventually quitting.
Greed is something that makes many forex traders deviate from their trading plan and make impulsive trading decisions. We are all here for profits but it should not be the only thing. Having realistic and attainable goals can keep us away from dangers that come from greed. Having a healthy competition within you to keep getting better at trading is what a forex trader needs. Greed is like slow poison and it will eat away your brain leaving you unable to make any logical decisions. This post should be read by every forex trader as it is that one piece of advice that you should never refuse.
Controlling greed is really important when it comes to trading forex. But when you know that there are many money making opportunities, not all traders are able to control their greed and trade as per their analysis.
Successful traders learn to control greed. This helps them focus on the long-term trading opportunities, which are bound to have a long lasting effect on their overall performance. It helps maintain a good trading strategy and a combination of this with a good risk management strategy helps experienced traders achieve consistent profits.
Your knowledge along with the market understanding can help you in not being greedy. When you know the market, you know what moves can lead to what results. You won’t even expect anything that is easy to achieve in the forex market.
The key to controlling greed in trading is to cut losses and let your profits run. The best way to avoid letting greed get the best of you is to stick to your trading plan. You should have a set of rules you follow, and stick to them like glue. When you follow your rules, all you're left to do is wait for the market to give you an opportunity to make a profit.