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Wednesday, 8 July 2020
Top Ten Side Effects of Greedy Trading
"Greed is so destructive. It destroys everything." – Eartha Kitt
If I was a trading doctor I would look for these 10 symptoms in a trader before I diagnosed them as a greedy trader. Greedy trading can result in blindness to danger, dizziness for profits, and a loss of trading capital. Look for these ten warning signs:
1. Greed causes the trader to only look at the best case scenario for profits and ignore the worst case scenario for losses in every trade.
2. Greedy traders trade WAY to big a position size.
3. A Greedy trader’s #1 priority is getting rich quick while ignoring the risk of ruin.
4. Traders that are greedy tend to believe they can have returns bigger than the best traders in the world right at the beginning.
5. Greed makes traders have absurd targets for their trades.
6. Greedy traders tend to buy stocks that are down 50% believing they will double and go back to where they were.
7. Greed distorts a trader to focus on the money not the homework involved to make the money.
8. Traders take trades where the odds are way against them because of the greed of wanting to make huge returns on one trade. (Far out of the money options)
9. Greedy traders trade with no plan and no method they are just pursuing profits randomly.
10. Greedy traders are always looking for the easy path to money not to the real path of hard work and experience.
Source: http://newtraderu.com
If I was a trading doctor I would look for these 10 symptoms in a trader before I diagnosed them as a greedy trader. Greedy trading can result in blindness to danger, dizziness for profits, and a loss of trading capital. Look for these ten warning signs:
1. Greed causes the trader to only look at the best case scenario for profits and ignore the worst case scenario for losses in every trade.
2. Greedy traders trade WAY to big a position size.
3. A Greedy trader’s #1 priority is getting rich quick while ignoring the risk of ruin.
4. Traders that are greedy tend to believe they can have returns bigger than the best traders in the world right at the beginning.
5. Greed makes traders have absurd targets for their trades.
6. Greedy traders tend to buy stocks that are down 50% believing they will double and go back to where they were.
7. Greed distorts a trader to focus on the money not the homework involved to make the money.
8. Traders take trades where the odds are way against them because of the greed of wanting to make huge returns on one trade. (Far out of the money options)
9. Greedy traders trade with no plan and no method they are just pursuing profits randomly.
10. Greedy traders are always looking for the easy path to money not to the real path of hard work and experience.
Source: http://newtraderu.com
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