How to control greed in forex. Then I will tell you what to do to become able to control your greed and become a profitable forex trader. Please read the below paragraphs to see what made me talk about greed: Last Friday the daily candlesticks had formed a very strong sell signal with several currency pairs including NZD-USD which had the best trade.

How to control greed in forex

Learn how to manage Fear and Greed while trading Forex!

How to control greed in forex. So it is very important to put Stop Loss to your trade and also at times Take Profit and one must plan a trading strategy aiming at how many pips one want to make in a day and should trade accordingly. You can overcome this problem of greed by trading differently. Try to trade by using a forex game or in a.

How to control greed in forex

The merits of that statement have been argued since Douglas first uttered it and I am not here to defend one side over the other. The ultimate defeat being blowing up their trading account. Just so you know that I have had up close and personal run ins with greed, allow me to relate a story. Very early in my trading career, I made a classic rookie blunder.

If this trade worked out, I thought, it would make my trading week! What a genius idea and what a genius I was to think of it!! But, guided by greed, I held out for 20 pips way too stubborn.

End result — I lost 23 pips way too stupid. Lesson on greed learned the hard and expensive way. So how do we, mere mortals that we are, go about controlling this all too human emotion of greed?

First of all, if you can identify at all with these quotes, it means you are aware that greed is negatively impacting your trading and that recognition is a BIG step toward resolving the issue.

Keep the plan nearby where you can reference it prior to placing any trade. The plan will be a strategy that you have tested and one that has put pips into your account over time. By this I do not mean positive pips on every single trade since every trade will not be a winner. But, overall, the strategy has been adding to your account size.

Now that we have the trading plan nailed down, we must — MUST — only take trades that fit that plan precisely. We only want to take higher probability trades that are based on our pre-determined plan. Keep in mind that when it comes to risk, less is better than more.

Also, always trade with a 1: Later articles and commentaries will specifically and in detail address the concept of Money Management in trading. Just let the trade play itself out according to the original parameters you put into place prior to being in the trade…when emotions were non-existent.

The plans that were put together at that time were based on facts. Once the trade is entered , however, emotions can shift into high gear as money — your money — is on the line.

Making changes to a fact based, emotionless trading plan based on moment to moment emotional shifts induced by price action in the market is not a prudent way to trade. It is a deadly way to trade. Managing and dealing with the emotion of greed is not something that will be resolved over the next couple of trades.

However, by being conscious of how greed can negatively impact your trading and implementing the former ideas as part of your trading regimen, you will be taking positive steps toward the goal of greed free trading.


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