Fear & Greed - the 2 deadly sins of forex trading
Just thought to share this here, from my experience in trading over the years i have had to deal with the emotions of fear and greed and i can say these are the most deadly emotions to manage as a forex trader.
Fear stopped me from allowing my profitable trades to run and greed stopped me from cutting losses early because i didn't want to lose. Greed also stopped me from taking on high quality trades as i always jumped in on every trade even when the risk was clearly too high. Please what do you guys think? Do you think there are other deadly sins in forex?
I agree greed is the real killer because it will make you lose all the money your have made over weeks, in one day
I'll just say this even though it is not a direct answer, but whenever you are entering any trading don't think of how much you can make, first think of the risk.
How will you feel if you lose that amount on the trade, because losing is almost guaranteed. Whenever you are placing a trade you have to be ready to lose. You don't know if you will be right or wrong.
When you are in an emotional state, you will try to push back. It is not just fear & greed. You are also sometimes in a mental state where you are not even aware of your risk, and you are just pushing back.
So, at all times think about the risk first. Every trade is just you testing your bias in the markets. And you should only risk the amount that will not make you uncomfortable when you lose it.
By doing that you will be able to make money in the long term, and keep a level head.