GREED

Greed has cost me a lot. This month based on my review, greed was one of the major reasons why i had so many losses. Greed turns smart into trading. listed below are the impact of greed :

1. Overtrading – too many impulsive trades.

2. Ignoring risk – taking bigger positions than safe.

3. Holding losers – hoping trades magically turn around.

4. Chasing the market – entering at the wrong time.

5. Emotional decisions – strategy replaced by emotion.

6. Burnout – stress from constantly chasing profits.

Greed gets a hold of you when you think the markets will keep on trending in one direction and you make easy money. But the reality is that the markets only trend 20% of the time. The remaining 80% the markets do not trend, they keep on reversing course and stopping traders out. Solution? build your trading around this reality that markets will refuse to trend 80% of the time. Open several trades in a burst and exit once you make 10 pips profit on each trade.

The market is like shark infested water, you get in and get out. That does not mean you should not allow your winners to run but you should open many trades, close some with profit after about 15 pips, then allow the rest to run. This means you should always add to your winners. Many traders only open one trade and they intend to leave it open till it reaches the TP which is risky. Since Trump came into power we began to have more trending days where the market sails in one direction but such does not last. The reality is most times the market will be zig zag not remaining in on one course for more than 20 pips.