The most important part to success in trading is controlling greed

[michellee]

Controlling greed is not easy, we often meets a situation that changing us. I often see this and makes me fail controlling my greed and just chasing the profit. Fortunately, the effect was not too big for me and I can back controlling greed.

Traders wants to make a profit daily but unfortunately, the market will not follow as you want. If you are profits, just considering to stop trading and leaving the market before the situation changes because if not, you might difficult handling your minds and just willing to profit more.

[GreatArkansas]

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?

Yes, I can relate, especially when I am just starting trade. What happened to me before was that I easily jumped on everything without learning the basics - the core of trading. Learnt the lessons as I went on; that's why I considered it "expensive lessons", losing money while learning.

Lately I realized that I must be greed, profit is already a profit, if you lost your trade, never chase, wait for another opportunity, 1% per day is already huge especially if that became consistent.

[Hatchy]

Has this happened to you before?

It happens to me a lot but then with some level of discipline I do come back to my senses. It's exactly how you had explained, every traders level of confidence increases after a good amount of winning. You begin to feel like you are ontop of the market and no one can stop you. Though I've experienced more longer time of winning before as everything is all about mindsets. The market can be funny sometimes, it is would present you some amount of wins and then because of many fundamental changes it begins to change it's behaviour and it's your job as a trader to spot these changes and adapt to them.. the idea is to make sure you don't lose all your capital because sure to stop at some point and recalculate what is going wrong.

[CryptopreneurBrainboss]

Has this happened to you before?

It takes courage for a trader to come out openly and admit that they failed because most traders choose to blame others instead of them accepting that they did some things that aren't right, they will look for something else and put the blame on.

A trader that wants to become successful will need to tell himself the truth always and if he isn't being selfish and lying to himself, he will always blame himself when the mistakes that led to his losses where his to begin with. Not many traders will come out (outright) to say they were greedy and that was the reason behind the loss but instead they will come up with another excuse and that is why they continue to lose because of their greed as they have not identified greed as a mistake that they are making.

Luckily I haven't been in this situation but I know of people that have lost everything because of them being greedy, I will always choose a small interest that comes steadily than being greedy and go against a good trading strategy to make quick profit that might end up being the reason behind me losing everything.

[Z_MBFM]

Controlling greed is not easy, we often meets a situation that changing us. I often see this and makes me fail controlling my greed and just chasing the profit. Fortunately, the effect was not too big for me and I can back controlling greed.

Traders wants to make a profit daily but unfortunately, the market will not follow as you want. If you are profits, just considering to stop trading and leaving the market before the situation changes because if not, you might difficult handling your minds and just willing to profit more.

It is true that greed is not easy to control. And that is why where a trader can easily make small profits from spot trading, maximum traders start futures trading or leverage trading after doing spot trading for a few days because there is an opportunity to make big profits quickly with high leverage with small amounts. And after going there, they become more confident and liquidate their balance. I was very addicted to futures trading at one time and lost a lot of money there. It happened to me that once I made $7k profit by trading a newly listed token, but on the same day I used them in futures trading and lost my entire balance.

[Maslate]

Very easy say to just control your emotions and greed when trading, but in real life going against your greed is the most difficult thing to do especially if you already imagine how profitable it is when you come up with a successful trade.

Greed motivates us to keep trading even if it means learning the hard way. But too much greed is not good at all as it may only lead you to a path of bigger losses and frustrations.

[AYOBA]

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.

Normal that’s how the trading goes the losing is very high than the winning but not everybody understand that which is why we can see most of the traders lose so much money in trading, having a great experience about tue trading is very important, but some people’s will be thinking that they wise and none can claim wiseness in the trading.

When some people’s see some of their friends winning a huge amounts of money in trading it will be given them a encourages thinking it’s easy to win the get a win, that’s why if they come to start the trading they don’t start with the amount they can afford to lose; which is a wrong move.

[Faisal2202]

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?

It happens to almost every trader at some point because we think a winning streak is improving our edge, but it is just inflating our confidence until we start taking risks that our edge or strategy has never accounted for. That's why when we put more burden on it, we face losses.

The pattern is always the same if you want to make consistent profit. After you start making money, you think you need to level up, but that misadventure causes one bad trade and wipes out weeks of profit. Then you start chasing the losses until the account is gone.

The cycle repeats, and you can say the market has a way of breaking your confidence into pieces.

[Nheer]

Very easy say to just control your emotions and greed when trading, but in real life going against your greed is the most difficult thing to do especially if you already imagine how profitable it is when you come up with a successful trade.

Greed motivates us to keep trading even if it means learning the hard way. But too much greed is not good at all as it may only lead you to a path of bigger losses and frustrations.

You are not wrong, it's really difficult to go against your greed as a trader but I must say a lot of people still make the whole situation worse for themselves by already looking at the potential profit. When you focus on the profit even before it comes it makes it very difficult to control your greed and emotions, that's why it is better to not focus on profits and consider your trading money lost it will be easier to control your greed and emotions. No matter how hard we try we can never take away greed completely, it's just part of us but when it gets out of control that's when it tuns bad.

[Russlenat]

Greed makes us win, but it can also make us lose bigger that our winning amount. So that's something that every trader is working on, unfortunately only few have managed to control their greed, while majority are still a slave of their greed when trading.

Seems too easy to think of getting rid of greed, but greed is already a human nature, that sometimes even goes uncontrollable that we don't find our own self in trading anymore. It's already greed that becomes the center of everything, no wonder why everyone loses in trading.

[suhadi88]

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?

Often, when our funds are depleted, the price rises. It's like they're just playing around, raising it for a moment and then dropping it again. Trying to find a rhythm and pattern often fails.

Yes. I have, but only a few lucky breaks, and the rest is just watching the funds in my account grow increasingly boring. Now I've moved on to something more comfortable.

[2stout]

I would also say just as important or at least it goes hand in hand with controlling greed is patience.  Too many are only of thinking quick, fast gains/money and the here and now, which also leads to unnecessary risk taking.  With patience comes a long term outlook.

[michellee]

snip

It is true that greed is not easy to control. And that is why where a trader can easily make small profits from spot trading, maximum traders start futures trading or leverage trading after doing spot trading for a few days because there is an opportunity to make big profits quickly with high leverage with small amounts. And after going there, they become more confident and liquidate their balance. I was very addicted to futures trading at one time and lost a lot of money there. It happened to me that once I made $7k profit by trading a newly listed token, but on the same day I used them in futures trading and lost my entire balance.

If they moving from spot trading to future trading or leverage trading without preparation and not have much knowledge, they will get in a problem to profits and only losing money. They can't just use their prediction but analyze carefully and that is not many traders can't do.

I almost addicted to futures trading but I realize that I lose much money and then stop. Much money gone in just few minutes but I don't regret it and learn that I was too greedy chasing the profit. I consider that is the hard lesson that I took from future trading and never do that again.

[Flashift]

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?

Yes, almost every trader has fallen into this trap. A winning streak builds false confidence, pushing you to increase leverage and ignore stop-losses until your account is wiped.

To break this cycle, I stepped away from centralized leverage entirely and moved strictly to spot trading through non-custodial aggregators. No leverage means no liquidations, taking the emotional greed out of the equation.

[suzanne5223]

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 have a point. There's a trader on earth who's not greedy at some point and decides to take an aggressive entry, which is normal, especially when we're already familiar with the market trend with a good setup, but I believe the major problem is the overconfidence, not putting into consideration that we're not the market controller; a single news can change the market's next trend, and when the market have tested a particular zone twice there's high chance of it failing.

You can be a day trader or scalper or both but let us assume both

We also have the swing traders. I think you dont have interest based on your writing.

Has this happened to you before?

Yes, from experience. I believe what makes happen is revenge trading, which could be due to the first loss, which may be through the market taking us out( hit stoploss), and later go in our predicted direction, and decide to revenge trade due to what happened

[Dr.Bitcoin_Strange]

You are right mate, this is something I'm battling with, I'm an unprofitable trader ( I said so cuz I'm not yet consistent in profit), and it's because of greed and lack of discipline, I write my rules and I disobey them while trading, I could be successful this week by following rules and by the next week, confidence has grown and I just end up crashing down the profits that was accumulated in the previous weeks. It's something that happen to me always, matter of fact, I think am gonna quit now 

[nara1892]

I agree with the idea that self-control is a very important aspect in trading, one of the reasons is because trading is a risky activity where if you lose control, there is a high possibility that your money will be drained to bankruptcy, and it is also true that loss of control is always preceded by two things, namely because of self-confidence after successfully getting a profit or emotions due to not being ready to accept losses, so we must ensure that our mental and psychological must remain calm and stable in both situations.

[GIF-JOBS]

Very easy say to just control your emotions and greed when trading, but in real life going against your greed is the most difficult thing to do especially if you already imagine how profitable it is when you come up with a successful trade.

Greed motivates us to keep trading even if it means learning the hard way. But too much greed is not good at all as it may only lead you to a path of bigger losses and frustrations.

You are right, many people do not come back thinking about big profits. They invest big money for big profits and they know that they can lose big money as a result. However, not being able to control greed is most often the cause of failure. Therefore, it is important to be mentally prepared in trading. Excessive greed and overconfidence affect wrong decisions. Therefore, decisions should be made by considering the possibility of loss as well as the possibility of profit. Therefore, every investor should think about whether he is ready to lose the amount of money he is investing.

[Dareo]

I think this situation happens to traders almost all the time. The funny thing is, big losses often start not from bad trades, but after a few good trades. Then we think we understand the market completely, and from there the risk increases little by little, and finally one trade wipes out the profits of many days ago. So the most important rule for me is, trade at the same risk even if you win. If a strategy works with 1% risk, then you should follow it even if you win 10 times in a row.

[Issa56]

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.

As a trader you are suppose to know when to stop trading, just because you are making profits doesn’t mean you should keep on trading, always know when to stop, because if you don’t stop at the right time, you just going to end up regretting, because you might lose most of the money which you made. Also just because you are making profits continuously doesn’t mean you should feel like a legend. 

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.

Things like this have happened to most traders before, and lots of people have lost money just because they become so confident in themselves. Lots of traders do make money during bull run, they always feel like they are professional trader already, they increase the amount they trade with, because during bull run it’s always easy to make money from trading, but when the bear market start, they start losing money back.