Greed is considered a natural phenomenon in humans, and one should not be affected by the bad habit of covetousness. Greed works as a hindrance to any development, and a good investor can be turned into a bad investor because of his or her uncontrollable desire for profit. In this article, we will discuss some of the crucial traits that you can develop to free yourself from avarice and improve your trading performance.
Impact of greed in the business
Greed indicates the intense desire for something in the quickest time, for the lowest possible cost, and it negatively influences the decisions of an investor. Because of greed, traders double their investment and lose it all in the end. This uncontrollable desire makes an investor take huge risks with a large amount of leverage.
Examples of greed in trading
Rookies always try to take a bigger lot in the beginning without measuring the market volatility, and for this reason, they cannot save themselves from the advent of a sudden bearish market. A beginner must estimate the risk he may face in the future because without measuring the risk with the proper risk management system, he cannot stay in this business platform for a long time.
Ways to control greed in trading
There are many ways to control covetousness in trading, and we will discuss the most crucial points for beginners to keep their harmful desires easily under control.
The practice of meditation every day helps an investor to control his overexcitement and boost his mental strength so that he can be free from any kind of distractions. Covetousness is seen as the opposite of discipline, and regular meditation helps a person to be disciplined. But make sure you choose a good broker or else it won’t help. Learn more about the high end broker Saxo and start trading like the experts in Hong Kong.
2. Trading journal
Without maintaining a trading journal regularly, we cannot maintain our trading goal. A trading diary helps a businessman to sharpen his skills based on previous historical performance. Experts write down what they are experiencing every day and set their trading goals in such a way. We should try to stay on the right path always, and if we change our path it may be disastrous
- Being focused
Trading is not like gambling where people depend on luck; rather, it is a business of continuous focus. If you cannot concentrate on a single thing continuously, then this endeavor is not for you. Successful traders are always focused on their goals, and they are not easily swayed by market influencers.
4. Honest living
If we can imagine a life of honest living, then we can easily avoid the trap of avarice. The moral of all religions is to avoid greed, as this thing is regarded as a heinous sin.
- Setting up a stop-loss order
Beginners are advised to set a stop-loss order in advance so that they can save themselves from a sudden downtrend. If they become the victim of greed, then they will not set a stop-loss order, which will make their account worthless by making the balance zero.
6. Setting up a stop profit order
Setting up a stop profit order helps by aiming for a certain amount of profit. Market leaders set to stop profit orders so that their trade can be closed when it reaches the desired level. Excessive covetousness can alter the mental condition of an investor and can bring about his ruin. Because of a sudden emotional imbalance, a trader can lose what he has already earned.
So, the bottom line is we can say that without controlling your desire for profit, no one can achieve their trader’s success. Newbies are advised to practice discipline so that they can refrain from becoming greedy.