Did the title sound contradictory to you? For some of you, the answer will be yes, while other are already aware of this condition. But before we reach any conclusion, we first need to understand why greed is regarded as detrimental to traders.
We all are aware that greed is one of the most malicious attributes of a human being. It makes you take the most reckless road to get your work done by any means. You forget about the most important thing which is patience while working. As a result, they face various problems like taking the wrong decision, facing losses, engaging in revenge trading, and many more. We will have a look at some of the characteristics of greedy investors.
- Overtrading and not setting a limit to the number of trades per day
- Not taking a break, even after losing
- Not understanding the market sentiments and only observing at discrete numbers
- Being overconfident and considering themselves right all the time
- Taking reckless and dangerous decisions
- Not following a proper trading method
- Revenge trading
- Not accepting the market results
If you have these criteria, you need to feel concerned about your trading emotion. When you don’t stop trading even after exceed your limit of trades per day, it is a sign that you may be greedy. Now, you are not the only one who wants to earn some bucks from this platform. However, you should also be conscious that the steps that you take are not detrimental to your premium trading account offered by Saxo CFD broker. As you start taking logical decisions, making consistent profit will become much easier.
Now, up until now, we have seen that why greed is harmful to investors. But isn’t greed a natural human trait? Yes, and of course, it is okay for the currency traders to be a little greedy in their trades. This is very useful to grow into a more experienced and ambitious investor. Now, here are some reasons you need greed as a trader.
It helps you to experiment a bit
There are investors who are never ready to try on different trading styles and strategies as they as too scared of losing. In the currency trading market, about 90% of investors lose their trades. So, losing is never a big issue. But not knowing about the market is. That’s why you should always be eager to look for better opportunities. Maybe such experimentation could help you to find the right trading setup for you.
Makes one ambitious
It is true that greed makes one become clear of what he wants from his trading career. If you don’t have any aims or goals, you may not be able to focus or concentrate on his trading work. Having a goal helps you to be consistent with your work to the very last moment. This is the greatest quality of all that one should have to be successful. You should remember that your ambition will help you fix goals that you have to achieve to reach your dream destination.
Having a proper money management
When you are looking for ways to earn money, you should make sure that you are not wasting your money in unnecessary sectors. That’s why an ambitious investor is always ready to have a proper money management sector to stop his investment from wasting. Proper money and risk management is very helpful in understanding how much risk you should take when trading.
Now, all these conditions are only applicable when an investor keeps his greed under control. Greed can only be kept under control when you are aware of your trading emotions. That way, greed will not be a burden on your trading career and will also help you to develop your trading portfolio.