Greed (How to avoid it)

If your daily cap (daily goal) is for instance $100 and you’ve made $95 by now, I advise you to stop for the day. Chances you’ll lose those $95 because of $5 are high. Usually those “last trades” are not the last ones because we tend to choose them poorly out of rush and out of the feeling that we don’t need much money by now. I strongly recommend you don’t try to round gains.

Continuing after a satisfactory profit is also counterproductive. We are creatures of habit. What you do now on a regular basis is what you are going to be doing in the future as second nature. So it’s better to think: Slowly but consistently.

I don’t know if you’ve noticed but I talk a lot about habits. For instance, do you have the habit of martingale til you win? It doesn’t matter how much you get away with this now, you’ll blow your account someday with this habit.

I suggest that when you have that happy feeling that you are in good profit for the day, you stop. Close your trading day with that good feeling. Don’t risk turning that good feeling into frustration. It has happened to the best of us.

money stairs

 
 

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