Is being Greedy Hurting your Trading Profits?

I see greed all day, everyday. We all want to make as much as possible on every trade and not miss out on a penny! The odds are against you if you keep thinking you will hit that next big win. Although it doesn’t hurt to try you need to remember that in the long run it can hurt you. I spent months with a nice cushion of money that I made back in January. I had a huge win on PHOT and it put me in a great position for being a newbie, I was able to take on a little more risk while I was learning. So I thought. I started to become really good at protecting my losses but did horrible protecting my gains! I believe that my perspective of my big win changed my strategy and I became more worried about making more money that I didn’t pay myself when the money was there because I always thought there could be more. Eventually taking small losses starts to add up and before I knew it I was getting ate alive! Now everything starts to compound and you start taking more and more risk and losing sight of your goals.

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I’m still in the game, and doing well again. I basically just had to take a step back and go back to the basics. The #1 thing to remember is you can’t go wrong by paying yourself, not matter how small the amount. Its better than taking a loss every time. Regardless of greed and how much you WANT to make, it has nothing to do with what you WILL make. It makes me sick if I think about all the money that I left on the table because I wanted more! Since taking control of my goals and paying myself more consistently I have been 100 times more successful. I feel like I have so much more control than I ever did, when for many months I felt the game was controlling me.

If you find yourself in my position which in talking to many people, everyone has been there a time or two, take a deep breath and take control! This might sound like a crazy idea, but lower your goals, if only temporarily but this will give you time to get your groove back. Taking losses causes a lot of negativity and stress in your day to day life and its not worth it, eventually it bleeds into your trading. Start taking small gains when you have them and just move to the next trade. This helped me so much, it made me more POSITIVE, and eventually more MONEY.

 

One Response

  1. Eric June 23, 2014