Why you should control your greed at trading
You must have heard about the story of ‘the Gold Egg Laying Goose and The Greedy Farmer’ when you were young. This tale is about a farmer who had a magical goose. The goose used to lay gold eggs every day and the farmer used to sell the eggs in the market to make ends meet. But the farmer was not at all satisfied with only one egg each day. He wanted to sell more eggs and get rich overnight. With that in mind, he hatched a plan to kill the goose and take all the eggs from its body. So, one day, he executed his plan and killed the goose. But when he tried looking for the eggs, he found out there that there wasn’t a single egg in its stomach. That way, the ill-intentioned farmer lost his magical goose out of greed.
In the trading sector, there are many ‘greedy farmers’ who tend to use their greed to make unnecessary acceleration in their trading. Greed makes them place bids on trading they would never usually think about. It’s not like that they always lose, but it often leads to monetary catastrophe.
That’s why greed is always posed as a threat in the bidding market.
Greed is one of the malicious traits of human nature. Greed is the condition of man to never be satisfied with what he has and to want more. Many of you may confuse greed with ambition. Ambition is a strong aspiration of achieving something by fair means while greed is related to fulfilling unrequited desires ruthlessly. Greed is one of the worst aspects the human character that can potentially cause harm to their lives. A greedy person often pays no attention to their limitations and can even adopt unfair means to fulfil their desires.
In trading greed has also proved itself to be a hindrance to people. Many greedy traders go astray because of their greed for money. We can never deny that there were times when greed can assist traders but when greed becomes unstoppable, it becomes a big thorn in the side of trading.
You can potentially lose many big opportunities to make money if you are greedy and wish to make more than others. Think about the novice bong traders in Hong Kong. They usually take their trades without doing proper analysis. On the other hand, experts buy bonds online after doing in-depth research on the market.
You may not even know when greed is grasping and controlling you. Since being greedy can potentially cause a threat to your personal and professional career, always remain aware of your actions while working.
You might be greedy if-
- You are overconfident when trading
- Bid on losing trades
- Overestimate your potential as a trader
- Leverage ratio is too high
- Take bigger risks in each trade
If your actions are often similar to those mentioned, then you should correct yourself and follow trading protocols. However, having one or two of these traits doesn’t always mean that you are greedy. Be sure to find out if you make these mistakes often or not and calculate how often you do them.
Learn to control your greed
Since greed can pose a big threat to your career, you should work on to overcome this emotion before it is too late. Here are some ways you can overcome your greed while trading.
- Fix a goal you want to achieve in your trade. By doing so, you will come to know about your limitations as well as the effort you need to put in.
- Follow your trading plan and strategies. If you follow a plan while trading, you will be aware of the step you need to take at difficult times instantly.
- Study the market and try to speculate about it. Never be overconfident while making a trade.
- Keep a trading journal to find out how much you are risking to gain rewards.
- Always remain careful when taking a risk. You should also be cautious during decision making.
Always keep in mind that greed can never take you to the winning peak rather, it can make you fall at to the bottom of the trading pit. Therefore, always look before you leap when trading.