The most important part to success in trading is controlling greed

[Oshosondy]

This would have happened to many traders on this forum before, that is if you are truly trading. A time you will be making profits from trading in a way there is not single loss like a magic for days or weeks or just a little loss. It is all going on good and you are happy which will make your trading confidence grow which is a greed catalyst.

You can be a day trader or scalper or both but let us assume both, using $500 to trade and earning $10 to $25 daily, the confidence will later deceive you to increase your leverage and become greedy, which is the start of the beginning failure. Stop loss started failing, trading account funds shrink and at last after several losses because of the trading mindset that changed from good to poor, the trading account funds all got liquidation.

From good trade that is not hitting the stop loss, to stop loss failure, to account funds complete liquidation.

Has this happened to you before?

[EL MOHA]

You can be a day trader or scalper or both but let us assume both, using $500 to trade and earning $10 to $25 daily, the confidence will later deceive you to increase your leverage and become greedy, which is the start of the beginning failure. Stop loss started failing, trading account funds shrink and at last after several losses because of the trading mindset that changed from good to poor, the trading account funds all got liquidation.

I don’t think there is any trader that has actually not experience this thing before, I think this is even the first real test of a traders psychology. You will be trading and making lots of profits and all of a sudden emotions kick in and instead of following your own trading strategy you start to set unrealistic targets like setting a monthly profit target and all this leads to increase in either position size either by increasing capital size or increasing the leverage and then the losses start to kick in.

Once the losses starts to kick then instead of going back to your earlier strategy and been patient you start to doubt your strategy and even begin start to try out new strategies and that’s how most traders failure begin and some could even end up quitting and later blame trading as a scam

[retaur]

Patience might be more important too. A lot of costs can come from entering positions in the wrong direction and paying too much in fees because of that. If you think something's not going to move for a while and you're trying futures, it might be more sensible to set an alert for when it either starts moving in the direction of your entry or on the direction of your take profit.

Knowing when to stop what you're doing is good too. Entering more than a few trades a day can be too much especially if nothing is moving and you can really get overconfident with it after a while too sometimes (especially in times of high volatility).

To some people, trading is very similar to gambling and it's important to have something else you enjoy if either become addicting. Or you could just not start doing them if you think they'll go that way. There's enough tokens to speculate on and you can still earn 6-12% a year in defi without trading anyway.

[Mpamaegbu]

Has this happened to you before?

Definitely, yes. It's every trader's reality. The only traders who can't experience that reality and the accompanying pain and regret that go with such are demo traders. Loss is an important aspect of trading, though it's often overlooked.

Over confidence in trading makes a lot of traders feel scandalized to accept losses. Instead, they adjust and readjust their Stop Loss till it becomes clear that their accounts are getting wiped off. I've a first hand experience of this. We all learn.

Talking about being greedy, I don't think that it's a problem. In fact, every trader should be greedy. It's the essence of trading. Otherwise, we won't be trading. We all want to grow our capital. However, what's not right is neglecting Risk and Money Management while pursing profit. We shouldn't leave our flanks open because it doesn't feel right doing that. Accounts get burnt with that.

[TheUltraElite]

I think the budget should be kept on a limit, how much maximally you are allowing yourself to trade with. Profit churning out from that capital amount needs to be kept aside. If the limit is there on the budget one would be limited to the maximum amount they can end up losing.

The major problem with certain traders is that they are mostly trying to day trade, which is carrying much higher risk than long term trading.

If they would limit their day trading and focus solely upon long term trading, the path would be much smoother. Keep in mind that I do not suggest anyone taking loans for trading, which directly negates any argument pointing to the fact that long term trading is "slow and takes time to make money".

[hugeblack]

To achieve daily profits of 5% or 2% (10 or 25 dollars out of 500 dollars) is an amazing profit and greed should not be present as it is much better than the average return on investment for most local investments, especially since we are talking about a daily return and not a monthly one.

[puloweh555]

That's what we often fall into when we generate profits in a few moments making us immediately confident, but sometimes when we gain profits it's because we entered at the right moment not because of clever analysis. So, even after we've made a profit in a few moments we unconsciously continue trading, leading us to overtrade, neglect risk management and miss our profit targets.

So it's true. Controlling greed in trading is indeed one of the most important parts of achieving success and long-term sustainability. Furthermore, many smart traders with excellent strategies still go bankrupt because they're greedy. Conversely traders with mediocre strategies can survive long term because they're able to control their greed. Essentially, to avoid greed in trading we must have a clear trading plan, for example, regarding entry, targets and stop loss. Stick to that plan without emotion. Focus on the process we're going through in trading, not on how much money we can make quickly.

[taufik123]

To achieve daily profits of 5% or 2% (10 or 25 dollars out of 500 dollars) is an amazing profit and greed should not be present as it is much better than the average return on investment for most local investments, especially since we are talking about a daily return and not a monthly one.

It's amazing if day trading can make 5%-2% with $500 capital, it's actually not easy to be consistent,
but if you can do it then it will be easier to make a profit, provided you understand how the crypto market moves.
But of course it will not always be profitable, maybe the profit process will be greater.

especially if trading Futures, it is easy to make profits in both directions, but the risk is greater compared to Spot trading.

The most difficult thing is indeed to control greed, be consistent and have to see how the current trend is hyped.

[Vaculin]

I think everyone falls on the temptation of trading, that is if you are actually a long-term trader. And we don't have to question that, because no trader that is not greedy, everyone is trading with greed in the market, its just that some are good in managing their greed, while those newbies in trading are trading all out with greed, and that makes them as bad traders.

However, my point is, we should stop normalizing trading with greed because its really not helping. It will only lead you to believe on unrealistic hope, that eventually turns out a trap in trading. Trading is already risky, and trading with greed will only make your trade even more prone to risk of losing.

[Alphakilo]

This would have happened to many traders on this forum before, that is if you are truly trading. A time you will be making profits from trading in a way there is not single loss like a magic for days or weeks or just a little loss. It is all going on good and you are happy which will make your trading confidence grow which is a greed catalyst.

You can be a day trader or scalper or both but let us assume both, using $500 to trade and earning $10 to $25 daily, the confidence will later deceive you to increase your leverage and become greedy, which is the start of the beginning failure. Stop loss started failing, trading account funds shrink and at last after several losses because of the trading mindset that changed from good to poor, the trading account funds all got liquidation.

From good trade that is not hitting the stop loss, to stop loss failure, to account funds complete liquidation.

Has this happened to you before?

At the point where confidence makes a trader think they can make more and try to increase leverage to earn more, they have automatically become what is called the delusional gambler.
When a trader realizes that their brain can play tricks on them at this point, it becomes a play of technical and physical barriers meant to protect the trader, otherwise this is where the loss begins.
By using strict daily loss limit, using speed bumps in the form of restrictions meant to disallow high leverage trading, and using a specific amount while the bulk of funds sit in a cold wallet safe, are all ways to avoid this emotional pitfall caused by greed.

[Questat]

Greed is what motivates people to enter trading, yet it becomes the worst enemy in trading. That's why we are seeing successful and profitable traders in the market, but when greed steps in and changes the whole perspective of the trader, and starts to leverage and get rid of stop loss, the whole trading scenario ends up in mess and in losses.

However, there are traders that despite of their greed, they still manage to control them and still see stop loss as a basic requirement. No need to take leverage, but just trade based on what you're capable of losing.

[BitMaxz]

That is part of breaking your own rules, which is why we use sub accounts in trading. If you want to break any rules or optimize, always do it on another subaccount and try to adapt your trading system. The result might be different from your old system, but you will learn eventually from those mistakes.

Greed is part of the trading; usually those who are greedy are those who do swing trading, like they follow a trend and only trade when EMA1 and EMA2 cross and are verified with any momentum oscillator. They keep holding until it crosses again. The profit with swing trading is high; they don't trade below a 4-hour time frame, but they never ever change the rule or break it. If they are going to increase it, it should still be near the risk amount, like 2% to 3%. Changing it to 2x and above, you already broke the rule.

[Finestream]

Every trader is certainly trading with greed, that's something that we can't really deny. But the thing is, not all those who are trading with greed can control their greed, instead they are the ones being controlled with their greed, that's why we are seeing traders who are trading with high emotions.

And when emotions rule while trading, you can't expect that your decisions and actions won't be biased, because as long as you are trading with emotions, you rely on invalid and unrealistic decisions that made you a poor trader in the long run.

[Ziskinberg]

Exactly. And that makes trading more risky because not all traders can perfectly control their greed. Their greed is their sole motivation to never stop trading, and for me that's fine, but trading with high greed is something that one should stop doing because it does not create long term profitability, but rather bigger losses instead.

However, I still believe that traders eventually learn to control their greed after long exposure in trading. They don't like seeing them in constant losses, so they will do everything to get rid of greed as much as possible.

[Sanitough]

You nailed it. And that's exactly the reason why a lot of traders do not succeed in trading, simply because majority of them are still trading with emotions, are still trading using their maximum amount of greed. And until they will never experience the losses and consequences  of being a greedy trader, they will never make positive changes that could somehow contribute to their trading success.

However, greed is something that's human nature. Everyone has certainly greed deep within, but some are good enough to control them especially if they know how risky trading is, and being more greedy will only compromise their trading outcome.

[LogitechMouse]

---
From good trade that is not hitting the stop loss, to stop loss failure, to account funds complete liquidation.

Has this happened to you before?

Yep. It happened to me so many times already that when it happens, I feel like I want to quit trading already because I lost funds AGAIN.

I know that losses are inevitable, but the one thing that I think can prevent is getting liquidated, and that's the one thing that I can't in the past. Now, I already know how to handle my emotions... or at least I'm better now at handling it because there are times where I can't and TBH, it's hard to control your emotions because we're human beings. Imagine the feeling of consecutive losses and you just want to recover those losses hence, you will make bigger positions with higher leverage. There are times that it could go your favor, but most of the time it doesn't because that position is being driven by emotions, and not by your strategy.

Being greedy is one that we must not have if we want to be a successful trader. If we feel that emotion, the best thing to do is to step away from your monitor, have some fresh air and do something other than trading.

[cryptoaddictchie]

You can be a day trader or scalper or both but let us assume both, using $500 to trade and earning $10 to $25 daily, the confidence will later deceive you to increase your leverage and become greedy, which is the start of the beginning failure. Stop loss started failing, trading account funds shrink and at last after several losses because of the trading mindset that changed from good to poor, the trading account funds all got liquidation.

From good trade that is not hitting the stop loss, to stop loss failure, to account funds complete liquidation.

Has this happened to you before?

Yes it happened so many times. My budget is like $1000 and having some small gains like $20 $50 sometimed $300 to $500 or more but when a bad trade happened its like eating almost all the capital.

With the fees and some hitted stop loss that still hurts added and incurred some moderate to heavy loss. Honestly its not easy tk have a win streaks when your loss sometimes is bigger.

[The Cryptovator]

You can be a day trader or scalper or both but let us assume both, using $500 to trade and earning $10 to $25 daily, the confidence will later deceive you to increase your leverage and become greedy, which is the start of the beginning failure. Stop loss started failing, trading account funds shrink and at last after several losses because of the trading mindset that changed from good to poor, the trading account funds all got liquidation.

From good trade that is not hitting the stop loss, to stop loss failure, to account funds complete liquidation.

Has this happened to you before?

So far all the traders aren't doing future trading. At least I am not doing that. Furthermore, I don't have any intention to make daily money from the trading. Usually I am a holder, sometimes doing scalping as well. If the market dumps after accumulation, then I consider them my holdings and move them to my hardware wallet. I want to sell at a profit, no matter if I have to wait.

A couple of times I missed the train or failed to take out the profits due to greed. It's not easy to control greed always during trading. Last time I regretted it for Ethereum; even when it was ATH, I didn't sell and wait. Through taking some profits, but missing the big profits like selling and purchasing back now. Almost my holding would be 3x now if I had done it.

[Perfectbaby]

This has never happened to me and same time I have not allowed greed to engulfed me because I usually know my target and I am not even expecting up to that amount you made mention per day while trading as my maximum target every day is always 1-5$ dollar and when I didn’t reach the 5$ per day even if is 1$ dollar I don’t mind calling it a day in other for me to maintain my balance and stands. One thing you must know about trading is that, the more you gain confidence in trading the more prone and vulnerable you become to loses so when you set the minimum profit to be taken a day, just within 1-5$ it gives you that stability to be able to remain in control of yourself and position while trading.

[Karl_3000]

Every trader is certainly trading with greed, that's something that we can't really deny. But the thing is, not all those who are trading with greed can control their greed, instead they are the ones being controlled with their greed, that's why we are seeing traders who are trading with high emotions.

I have been trading since long time ago, I have always been losing than winning money, so what is the point of something that is financially affecting my life. I quit to trade because of the greed, hodling is far better than trading. Some traders will not understand this until they miss the next bull market. I have posted this several times, but they will not listen. People should trade with the amount of money that they can be able to afford to lose.