A trader's greed is not a vice
And again about her, about the "toad," so much has already been written and said about her, and how much more is to come... And for some reason, nothing good. Everyone is scolding her, complaining about her: "Eh, it's only Greed that prevents earning!" Whoever you ask what prevents the most trade - of course, greed, they say, well, and fear in addition.
Books talk about her all the time, too: "How to overcome your Greed and start earning", "Greed is the main enemy. trader". In general, no matter where you spit, she, poor, cornered Greed, is to blame. Is that fair?
That is, we need to "defeat" it, "tame" it, "take control" ... Why!!!? Why did we come to the market then? Everyone is so "greedy" and unselfish. And we don't need the money, right? And we stare at charts until we're dizzy, and we press buttons without sparing our belly, purely for altruistic reasons. Just for the sake of world peace. It's absurd, isn't it?
Greed is the main engine in trading. It's what drives us to come to the market, look around, learn, and finally start working and, God willing, earning. Let's call things by their proper names. Greed rules.
Let's look at a typical example that trader's books give to illustrate the devastating effect of Greed on trading. Let's say you opened a position, but the price didn't go your way, and it was time to exit on the stop, but you didn't exit, and the loss continues to accumulate. It's all because of greed. It prevents you from locking in your losses because you hate to lose money. Bullshit! Absolute bullshit! Of course it's a shame to lose money, no doubt about that.
But it's exactly Greed will make you go out on a limb. Because if you don't get out now, procrastination can bring greater losses. And because of your Greed, you will make it right. A kind of instinct of deposit-preservation. People do not close their positions on time not because of greed, but because of banal stupidity, which is so strong that it suppresses a healthy and useful in trading Greed.
Another example from the same books. Let's say you opened a position and the price moved in the right direction. Having made a small profit, you quickly close the position, and the price continues its movement and you, biting your elbows, watch the market from the sidelines. Greed is also to blame for this, well, what are you going to do. Allegedly it forces the trader to take any, even the smallest, money because of the danger of getting nothing. Nonsense again!
Normal, Healthy Greed won't let you cover a position halfway. Greed understands (with our brains, of course) that the profits could be bigger, much bigger, and that Greed won't stop until it takes it all. And what do we do? We grab a little piece and go into the bushes. Stupidity once again overwhelms our best advisor.
What do we have in the end? A simple conclusion. Everyone knows the expression: successful trading is possible only if the profit is greater than the loss. This is exactly what the long-suffering Greed helps us to achieve. So let's not be ungrateful altruists. Let's stop trying to get rid of this necessary feeling of any trader, and start to nurture it, to cherish and cherish, so that Greed could finally overcome the greatest enemy of a trader - stupidity. And then the losses will cease to be so frighteningly huge, and the profits will finally begin to increase in size. Deposits.
I'm a greedy person, and I don't hide it. I feel sorry for my money, so I always exit with a stop loss, because losses can be much more substantial. I am a greedy person, so I always try to hold a profitable position to the end and do not fix it before the time, because I strive to squeeze every last drop of profit out of the market. That's how greedy I am.