MoneyTec 2.0 - Online Forex Traders & Brokers Social Networking Community » Trading Methodologies » Trading Psychology

[joechunkybutt]

Sometimes I'll see 7.5 pips and i'll be like "just 1 more..." and it'll drop before I get a chance and its gone foreever.

[nwhmbiz]

u dont to me 7.5 pips just aint worth the time

[elmagd2000]

Greed and fear or any psychological issues involved in trading form 70% of trading decision then comes system and other issues. The key to master your emotions is to PLAN. define everything before you trade including MM, entry and exit. Furthermore, imagine worst and best scanrios and how to deal with. Then at trading time just APPLY your plan and stick to it. Try not to take critical decisions in trading time. I think this way you will master your emotions. Good luck

[midastrader]

I used to tested for maximum profit per trade. If we need a maximum profit, we will face many minimum losses. So the aggregage return for 1 year of maximum profit trade policy are close to a reasonable profit trade policy.

[Nooztrader]

You half to be greedy that is where u make the most gains. You half to be more greedy then 7.5 pips i try to atleast get 100pips minimum. Always let ur profits run. If you dont have huge gains how could u survive when u are having a losing streak. Having huge gains will make u money in the long run.

Here is what i do when i get into a position and it is going my way. If it is about 15 points above where i bought it i move move stop loss to break even and go to sleep or just log off the account. I try not to worry about my position if i am making money.

[FOREXFORKAREN]

When you move your stop to breakeven do you get stopped out prematurely half the time or more? As volatile as this market is, I am curious. EJ

[Nooztrader]

About 1 out of the 3 or 4 times it goes back but most of the time it just heads in the right direction.

[JR97]

There's a difference between being greedy and holding out for your analysis/system returned target. Greedy is wanting more than your analysis says there is (or isn't).

Best way to get over that is probably to suffer through the pain of getting your ass handed to you.. multiple times if necessary.

[airwave]

"Greed is Good" - Gordon Gecko

[0_PARADOX_0]

Lol, Greed is good,

But dont think of as greed its a profit objective.

[azarento_com]

Originally Posted by joechunkybutt

Sometimes I'll see 7.5 pips and i'll be like "just 1 more..." and it'll drop before I get a chance and its gone foreever.

I understand you!

[azarento_com]

Originally Posted by airwave

"Greed is Good" - Gordon Gecko

Most of the times not!

[james2ko]

Greed is good, heh?..just ask the poor guy in this article....

How To Make A Million In 40 Trades

[narafa]

The market always gives what it gives, and that's it. The problem with Greed is more complicated in the trading process even after one become an experienced trader.

For example, a trader will see evidence that he won't be able to take more than the 120 pips which the market is showing his position right now, however, the trader gets greedy and says I will lock in profits at 60 pips gain and will wait for the market to move another 80 pips to make it to the 200 pips point.

The issue here is not 200 or 120 or anything, it's just that the market is not going to give you more than that. You got greedy and you are risking 60 pips of your assured profits in exchange for 80 more pips. Just look at your risk/reward ratio in this case, 60 pips (Sure gain) against 80 pips (Future gains). You are nuts of course to accept such a formula..

This is the main problem with greed.

Thanks,

Nader

[cornellj]

I have had many personal battles with Greed. A bit of it is healthy. Too much will cloud your judgment.

I have learnt to control it by applying very strict lot sizes with multiple positions. This brings me to my budgeted profits easier and a lot less risky than the bigger(more greedy) lots sizes and positions. In this way I will start buying at a certain price at 1% of margin. My budget is 600 pips per month on 2% of margin. If the price moves against my position at 40-70 pips I will hedge the position and make profits the other way. At regular points I will take profit and add new positions. In this way I always achieve my budgets without worrying too much about greed. Although we are day traders there is no limit as to how long a position can be kept. This is the sole reason I trade contracts for difference and not fixed period futures. I have the ability to keep a trade for months, and I have done so on numerous occasions. In this way I can manage all positions to profitablility. My position does not have to be closed out on a loss because of a time limit on the trade. This option removes one more variable from my trading that I can use to advantage.

In our uncertain business every uncertainty you can remove from your trading is an advantage to you.

Apply strict rules to your trading and you will overcome greed.