Another mistake that make traders lose. Greed.

[sheenshane]

It's called "no risk no gain" which is also simply gambling.

I tend to agree with this line; it's very simple and understandable.
But of course, its applicability also depends on your trading skills, not solely on luck, and not just like gambling.

As traders, we all experience a certain greed.
Sometimes people need to make costly mistakes to learn and avoid repeating them in the future.
If you think that's not right, you have time to correct it in your next trading session. 
Because in trading, we shouldn't expect profit all the time, sometimes there's a failure to learn from it.

[Finestream]

If you have no real discipline in trading, greed will certainly eat you out. That is why a lot of traders have been losing in the end because their greed is higher than the amount of discipline they instill from the very beginning. One single win, its like they're up for big and consistent profits, when everyone knows that would be impossible in trading.

This is a reminder that losses are still part of trading. And no matter how massive your gains are, your losses will always be double or triple than that, especially if you are trading with greed as the center.

[Bd officer]

They are good and they are making money, but after they have been making money for 3 days or more, they will think of increasing leverage. Anyone that has been tradimf very well woukd have experienced this before.

Let me ask you this question and be sincere. Have you not experienced it before?

I have experienced it before.


The second one is when you would have been making money already, but you did not close the trade and it turned to lose. This is also very common in trading.

Slow and steady profit is better than steady profit turmed losses.

I think this has happened to most traders. I have also faced such experiences many times and I lost a lot of money in it. In the past, I was in 5x profit once, but I expected more and thought I could take 10x profit but in the end I faced losses. Actually greed destroys people, so you cannot be too greedy while trading. So when you see profit, you take profit and if you are too greedy then you may face losses.

[Mpamaegbu]

Slow and steady profit is better than steady profit turmed losses.

Nothing beats slow and steady. It builds capital if only one will be patient doing it through compounding. Only experienced traders will understand the doctrine of slow and steady. Newbies will think it's a waste of their time.

On the two issues you mentioned – increasing leverage after several wins, believing one now has a magic wand to win all trades and secondly, allowing trades to run. I've been a victim of both. How I cured myself?

For the first vice – I learnt to be contended with whatever I make and don't increase leverage beyond my capital ability.

For the second vice – I also set a SL. I can only shrink my SL and not expand it. I rather price took me out than shift my SL with hope that price would revert before I get taken out. Nah.

[coinlary]

It's called "no risk no gain" which is also simply gambling.

I tend to agree with this line; it's very simple and understandable.
But of course, its applicability also depends on your trading skills, not solely on luck, and not just like gambling.

I also understand your point  but that particular  phrase "no risk no gain " is used by mostly gamblers these days and of course, we have some det of people who use that word a lot to push others into making unreasonable decisions.

As traders, we all experience a certain greed.
Sometimes people need to make costly mistakes to learn and avoid repeating them in the future.

How costly though, there are some which might never yield recoveries or even leave some scars .
Greed are deliberate actions which can eventually workout , not sure if it counts as mistake . But sure learn from it , it doesn’t  stop you from being  greedy next time, it only makes you less greedy.

[WhoYouCantKill]

How costly though, there are some which might never yield recoveries or even leave some scars .
Greed are deliberate actions which can eventually workout , not sure if it counts as mistake . But sure learn from it , it doesn’t  stop you from being  greedy next time, it only makes you less greedy.

Exactly, some mistakes that traders does when trading are done deliberately, which they think they can find another way out, instead of doing the right thing, which involves the right process and greed can cause them to never be satisfied with what they have, which will lead them in making decisions due to their inability to learn and manage the risks involved. So its important for one to ignore whatever thing that will make them not to be profitable and successful in their trading standards, instead they should set rules that will help them to achieve their purpose.

[Dareo]

I would say that winning in trading is not the real challenge but being able to stop after winning is the real hard work, because many times it is seen that people cannot stop even after making good profits, they think let's keep it a little longer, take another trade. This is where the problem gradually starts.

And I think greed is not bad at all but if there is no control over it, then it becomes the biggest enemy, So the most important thing in trading is discipline, If there is a clear plan in advance where to take profit, where to stop then there are fewer wrong decisions due to emotions. Another thing I would say is that the market gives opportunities to everyone but only those who know their limits and can stop in time can hold on to that opportunity.

[Y3shot]

Yes and I agree with you. Greed is the main reason why people lose in trading.  We have two types of greedy traders, and one are the beginners who are so greedy to learn but wants to go into trading to make profit.

It very much impossible to to make profit in trading when you dont understand what trading is all about.  Another greedy traders are the ones who make profit but find it difficult to go with profit and come back another time. They just feel because they were able to make profit and profit can be made easily.

[LogitechMouse]

They are good and they are making money, but after they have been making money for 3 days or more, they will think of increasing leverage. Anyone that has been tradimf very well woukd have experienced this before.

Let me ask you this question and be sincere. Have you not experienced it before?

I have experienced it before.

I've experienced being greed when it comes to gambling, but in a different way.

In my case, it's not increasing my leverage, but when I'm in a winning streak and suddenly I got stopped out on my next trade, what I'm doing is that I'm increasing my margin, my stop-loss and take profit just to recover those losses plus make some money as well. More like martingale if it's gambling or "recovering my losses" just the same way in gambling. There are a few times where I recover those losses plus I make money, but for the majority of the time, I lose even more buckos.

Fortunately for me, I'm not doing this anymore because in the long run, this would be the main reason that my money will lost. For sure, many traders especially newbie ones like me have experienced this already, and it's okay to experience it because they'll adjust to it especially when they feel that they're losing significantly because of it. Being greedy for me isn't helpful for a trader, but there will be times where you'll be tested and you will feel it. The feeling of being greedy, and it's up to you now if you will follow it or you're disciplined enough to say to yourself that "Don't be greedy."

[michellee]

Usually, if they are make a profit for 3 days or more, the level of confidence will increases. That makes them feels they are good in trading and wants to chasing more profits. They slowly forget that they can't always profits in trading as the market can change direction any moment.

If they can be wise with their trading, they will not feels confidence and even they will keep calm down and analyze as usual without emotion. They don't chase profits as they know that is not easy so they just keep analyzing carefully.

They will thinks that steady profit is better and small or medium profit is better than feels losing money in trading. They don't trade if they feels that the market suspicious and delay their action for a while.

[MarjorieZimmermanGinger]

They are good and they are making money, but after they have been making money for 3 days or more, they will think of increasing leverage. Anyone that has been tradimf very well woukd have experienced this before.

Let me ask you this question and be sincere. Have you not experienced it before?

Almost every beginner trader experiences this situation and even I myself often found myself in this situation. After achieving profits in previous trades, they think they want to make much bigger profits in the next trade, so they try to increase their leverage even more which can unknowingly destroy their trading discipline. Greed for big profits in trading often overrides well-executed strategies and sometimes we try to do things we can't control.

If a trader is greedy and undisciplined, it can be difficult to achieve success in trading because experienced traders generally wait for the right moment to enter a trade and always limit their risk tolerance. Honestly, I've been in this situation, even more than once and that's why I now don't trade all the time and instead focus more on momentum.

[Asuspawer09]

I mean i used to do it in the past but it was actually really easy to correct it, I mean the stop lose was there for a long time already and we are not using it, thinking that we are probabably going to lose an opportunity but I learn the there are always opportunity in the market, and small profit is going to be better rather than taking a lose, This was already a lon time lesson in trading that we should never be greedy when it comes to trading because it is going to be a huge trade off, It was always like your going to blame yourself when it's like you already earn a 100$ but you end up losing it just because your too greedy and not putting atleast a stop lose to save your profit in a trade.

We already know that when we lose that focus because we are being too confident, we are going to end up losing it, so having the discipline and focus is always the best thing every time, you dont want to lose it just because you are winning, and losing it should always be on.

[Rruchi man]

They are good and they are making money, but after they have been making money for 3 days or more, they will think of increasing leverage.

There is a popular warning in trading that you should be more cautious even after winning because overconfidence can creep in and you can start making wrong trading decisions, going outside your principles. The principles that give you little profit could also give you big profits if you are patient with time.

The second one is when you would have been making money already, but you did not close the trade and it turned to lose. This is also very common in trading.

It is common in trading because many people do not know how to take profit. This is why some people stay in trades for too long even when the market has given them a good risk-to-reward ratio already.

[Royal Cap]

And this is why I prefer spot trading, because there is less risk and less greed. Because what happens to everyone there will happen to you. But in the case of futures trading, it becomes a little more tempting. Everyone there loses the most due to greed. Another thing is that the more leverage, the more losses. So in my opinion if you want to live in peace there is no alternative to spot trading because even if it gives profit, it is at least permanent. However it is true that futures trading can definitely be profitable for those who are professional or can control themselves.

[Japinat]

All traders have experienced that for sure, when they see chances to increase their profits, greed enters and leverage takes place. The only challenge then is how to make your leverage works and control the greed within you, because for obvious reason, too much greed will not do  good at all.

Let us not forget that trading is like gambling, where there is high greed, there is bigger chances of losing. And no smart or wise trader works with leverage, that's a very tough one, and it can only led to possible bigger losses than wins.

[Hamza2424]

Haha bro, you just exposed literally every trader, even I was doing it at some point haha.

The leverage creep thing is real, it happens gradually like a virus and we won't notice it until it completely controls us. We start at 5x, and after having a good week, we increase leverage in the next one and lose it all. Our fear with every increase in leverage goes down, that's why we increase leverage and end up taking more risk. This is how we learn to risk more, but it is sometimes not good when greed takes over.

I might not be wrong to say a lot of traders blow their accounts on good trades, not on bad trades, because they mismanage their good trades. The right entry is not all it takes for us to make money, a better exit is also necessary.

[kawetsriyanto]

In fact, in an article here, Greed was described as "Greed: The Silent Killer of Crypto Traders."

This makes sense, very much so, because greed causes us to lose control. What we've carefully targeted and planned is lost simply because of uncontrolled greed. This leads us to lose even more.

Why is this?
When we should have taken profits because we've reached our target, we want to cancel the take-profit order, hoping for a higher price. However, the price drops again, but we continue to ignore it and hope it will rise even higher. Eventually, the price drops again, even below our initial take-profit target. That's when we start to panic and hesitate to do what we should do. Finally, the price continues to drop, and we are ultimately liquidated.

[Kelvinid]

I guess no matter how profitable a trader is, he will never gain profit satisfaction, that's because just like gamblers, traders are born greedy and we can do nothing about it. The only thing we can do here is to manage our greed, and make trading not a thing of greed for money, but a thing of right mindset and discipline.

I actually experienced this, and everyone is. Its like we are not just trading just to make profits, but we are here to find and establish wealth. But with greed around, it combats our ultimate goal, that's why never be greedy when trading, its a trap after all.

[Vaculin]

I have also experienced a situation like that. But actually, I didn't really notice that I was beginning to become greedy because of some gains obtained in trading. First, you would definitely feel that we might need to take higher risks to earn more. Not because we lack ability, but actually, we are not grateful for what we have already gained. 
When I make profits from several positions I have taken, it might be natural for some traders to feel more capable than before. So feeling that increasing leverage won’t be a problem. Especially since previous gains are considered pretty good.

You will not really notice that you have been greedy the whole time until you start losing from your trades. Its like no risk no gain, so in order for you to gain, you need to take some risk, but you fail to take calculated risk because you are blinded by greed so you end up still at loss.

Its a good thing to see yourself in profits, but never closing a position because you're up for bigger profits, that's already an act of greediness. You're no longer making profits because that's your goal, but you are already pushing your greed to satisfy your emotions, and that's very dangerous when trading.

[ZAINmalik75]

The second one is when you would have been making money already, but you did not close the trade and it turned to lose. This is also very common in trading.

Slow and steady profit is better than steady profit turmed losses.

Greed is the cause of many problems, not just in trading but in other matters too. It has made people take the lives of others just because they wanted more. It can be love, not just money, or it can be anything else, just like they show us in movies and in documentaries based on real life events.

Greed is a curse, they say it for a reason. When we are greedy in trading, we hunt for more profits. We think we are above all our ideas after winning some trades, maybe in a streak. That's where we let our pride get in the way. Pride, revenge, overconfidence, etc. are things that turn into greed, and then we lose more.