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  1. #1
    Senior Member raymond09's Avatar

    Fear And Greed. Which One Is More Harmful? !!!

    Fear and Greed are two emotions that Forex traders have to control. New Forex traders have a lot of problems with these two emotions.

    Greed is the first emotion that starts bugging. When someone just starts learning and trading Forex and reads about the money that a trader can make through Forex trading, he/she thinks about nothing but making a lot of money through Forex trading. Unfortunately, many new Forex traders are not "lucky enough" and so they succeed to have some good trades in their demo accounts at the beginning, and this makes them think about opening a live account and making real money. I call this bad luck, because as soon as they start trading their real money, they see the other side of forex trading and forex market. They lose and so greed will be replaced by fear.

    For a long period of time, they move between fear and greed. Sometimes they are fearful and sometimes they are greedy. When they have a losing trade, their fear show up and when they have a successful trade, their greed takes the control. When they are greedy, they are overconfident, and so they click on the buy/sell buttons bravely and when they are fearful, they have no confidence and so they just watch the market and don?t dare to take any position even when there is a good trade setup.

  2. #2
    Legendry Member willyw's Avatar
    Fear can be overcome with enough of practices. If a trader has fear in trading he wouldn't loss his money and either will he make profits, too. But greed is more harmful. Many times a trader is greedy and wants to make more profits and reuslt in heavy losses. In my 26 years of trading I have seen countless of greedy traders who turn their profits into losses, sometimes heavy losses. Enter/exit the market according to your trading planning is best policy and for newbies never follow others in trading. Make your own decision!!!

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  4. #3
    Veteran Member uj.forex's Avatar
    greed... because in order to cover up the losses, a trader opens new positions again and again and result in further losses... similarly, in order to earn more profits, he over trades and end up with losing the profit he earned before....

  5. #4
    Rookie Member
    Fear is a vital response to physical and emotional danger—if we didn't feel it, we couldn't protect ourselves from legitimate threats. But often we fear situations that are far from life-or-death, and thus hang back for no good reason. Yet exposing ourselves to our personal demons is the best way to move past them.



    Greed is the inordinate desire to possess wealth, goods, or objects of abstract value with the intention to keep it for one's self, far beyond the dictates of basic survival and comfort. It is applied to a markedly high desire for and pursuit of wealth, status, and power.
    As a secular psychological concept, greed is, similarly, an inordinate desire to acquire or possess more than one needs. It is typically used to criticize those who seek excessive material wealth, although it may apply to the need to feel more excessively moral, social, or otherwise better than someone else.
    Those 2 factors have to be well controlled by traders, on the fear of losing trades and money, and the greed that you want to keep trading without thinking you are running out of cash. So these are two factors that need to be well managed when doing binary trading. As they teach you on Vault Options, not to to be affraid to trade, but keeping track of your capital.

  6. #5
    Specialist Member marvel's Avatar
    Quote Originally Posted by uj.forex View Post
    greed... because in order to cover up the losses, a trader opens new positions again and again and result in further losses... similarly, in order to earn more profits, he over trades and end up with losing the profit he earned before....
    Very good conclusion! You are so right uj! When I think now it is really the Greed that drives most of our trading decisions. Fear appears only when you really understood that you are in danger or when placing too small stop loses, but Greed is all the time and especially after a losing streak of trades you made. Than the greed is that feeling which could ruin your account in no time!

  7. #6
    Legendry Member willyw's Avatar
    Quote Originally Posted by marvel View Post
    Very good conclusion! You are so right uj! When I think now it is really the Greed that drives most of our trading decisions. Fear appears only when you really understood that you are in danger or when placing too small stop loses, but Greed is all the time and especially after a losing streak of trades you made. Than the greed is that feeling which could ruin your account in no time!
    Greed is the greatest enemy in our trading. Greed can result in the lost of many accounts. Many traders are greedy to make more profits or are not satified with their trading results. Never be unsatisfied. Be satified with what you earn. Small profits can accumulate to huge profits in the long run. Its better to make a dollar a day than to loss $10 a day.Our next enemy is emotions. Both of these must be overcome to trade successfully.
    Last edited by willyw; 04-04-2013 at 09:15 AM.

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  9. #7
    Solid Member
    That is exactly what I know from my personal experience. The most important thing to master is the emotional control. You have to be calm and with clear mind independently of the situation in which you are. Emotional control helps a lot not only in decision making for entering a trade, but also for successful exit.

  10. #8
    Solid Member
    Between Fear and Greedy, I think fear is more harmful. Fear will make your emotion unstable and make you never open the position. But with greedy, you will open the position, lets your post in positive profit condition. Sometimes I feel greedy. Put TP 200pips with SL 30pip. But when I'm in profit, I always protect my profit using Trailing Stop (TS).

  11. #9
    Senior Member Grae's Avatar
    Fear is the inability to enter a market position because you are uncertain (risk). You overcome it by looking at the technicals more than the fundamentals--looking at chart patterns and higher timelines

    Greed is the hope of getting more that keeps you from closing trades, or waking away in a bad market day. You overcome it by setting daily limits/expectations.

  12. #10
    Veteran Member Ammeo's Avatar
    Fear aint that harmful as Greed...Fear is the ability to say "NO", Greed is the ability to say "YES"....its better not to go into something which you are not sure of rather than going into something with a "Miss or Hit" chance...
    As Warren Buffet has always said that he never takes any position into something that he is not sure of...

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