“Curiosity killed the cat”. There may be few people who haven’t heard of this famous saying. Sometimes, we should be content with what we have and do not desire for more as it could bring the end. However, Forex curiosity is always a good thing but greed is the ultimate weapon that backfires. If you are new to trading or an intermediate investor, this article may seem far-fetched but it is the absolute truth. We are not here to describe some thrilling plot or an amazing twist to a story but the cold truth of the currency market. Are you confused about whether this article is worthy of your million dollar investment plans and time?
Ask yourself how often have you kept a position open to making the most amount of profit as possible only to find it closed at a negative balance? Don’t bother to answer as this is pretty common in this sector. People become greedy easily and what is even more pathetic is they never try to rectify this behavior. This piggy behavior can cost you your entire capital if it remains unchecked. In the beginning, it may seem harmless as few trades will do benefit but in the long-term, this becomes the Pandora’s Box which sweeps away all your profit. Read this entire post to find out how investors been cheated of profit because of their own silly behavior.
By going off track
Greed instantly throws investors off track in the market. Believe us at it will not affect the account immediately but after careful evaluation of the trading performance. The above example is the best way we can put our words into context. If that trade was closed at the set profit price, there would be no loss. Still, people want to make more money and hold positions for as long as they can. This is not a war that should be won by any means! It is only a simple trade that can be placed a thousand times more if there is sufficient capital. This is easy to realize now but during the trading session, millions of calculations run in the head. Thus, it is not possible to make the right decisions, hence, the birth of the formula to control your greed. Sadly, now many tend to follow it and end up losing their investment.
Be a rational trader
You have be a rational trader to earn money. Find the best brokers for Forex trading and take trades with logic. Getting emotional and taking random trades to make a big profit is never going to work. You have to stick to the core concepts of trading and trade this market with strict discipline. Once you do so, it will be an easy task. Never try to bypass the rules of money management as it will cause heavy loss. Follow the safety protocols and you can become a successful trader.
A major obstacle to executing a planned order
When long-term success is the goal, this becomes the ultimate obstacle. Imagine you have a target of making $100 within one month. If a good trend pops up and the trade is already at a profitable position, it is sensible to close the order. However, greed will tell us to keep it open for a longer period. The benefit is less of the target to fill up to achieve the 100 dollar mark up. This all seems very logical but it is a suicidal method. No-one has ever become successful by using this formula. Thousands of people have tried it before but all have succumbed to failure.
Not following the strategy
The ultimate truth is, greed will eventually diminish the importance of the strategy that has been developed over time through trial and error. Gradually, greed becomes the new method of trading and one day, all will be lost. The best scheme may fail if greed overtakes the process.