Greed and fear during Forex trading


The crucial stage in a trader’s life is when he controls the greed and fear of trading Forex, as well as abandoning the need for others to get advice and start making his own decisions and giving advice to other traders. From this point of view, there are some interesting psychological ideas for a professional trader, for example, controlling greed and fear while trading Forex and relying on his decisions to seek the success of his deals

Although there are many positives for Forex trading, there are many drawbacks as well, and most come from human nature. Greed can be good by a small percentage, but it can be dangerous if it increases. This desire can make us work harder, look deeper and do not pull away when things look bad, but they can also stop us from stopping at a time when we know we have to stop, and therefore can make us risk everything in an effort to prevent failure

The law of supply and demand is the main driver of financial markets. Demand is the greed of a commodity, and supply is the willingness to meet that demand. When one goes beyond the other, prices rise or fall – it is a fundamental principle of economics

Greed can be good in many ways. Imagine that you are completely in control of your greed and decide to follow the evolution of your trading process. It reaches the first level of profit taking, and then reaches the second and third levels at the time the profit-taking order executed and closes the transaction with a good amount of profit. I was controlling your greed enough to leave a good open deal because you did a good search, you had the hope that it would be included in the profit-taking levels, and finally, making a profit by allowing the pending order to end the deal. If you control your greed, and if you are satisfied with your deal, you will look to start over. Now imagine that you started a deal in the hope that it will reach your profit-taking point. However, the price is nearing the profit-taking order and then reversing it abruptly and reaching a stop loss order simply because you did not search well, or you I was unrealistic about your expectations for this transaction, so you do not have control over your greed, so you will be in the same error again and you will lose more and more

In other words, we can say that evil greed is necessary, because lack of it means lack of demand, and the absence of a request means no supply, lack of supply and demand means no market, which means no trading – profit or loss

Greed also means that we can refuse to close the deal in time, hoping for more and more profits. This behavior is often a loser, and if you follow a successful trader you will find that most of them are doing many deals, in it deal

There another emotion that brings us back to the days of our ancestors, which is fear. Fear has several forms, but now we are in fear of failure. Our ancestors used the principle of fighting or escaping to protect themselves from fear, and today there is a similar principle, which takes over if we are in danger of failure; either escape the situation, and thus close the deal, or fight by throwing more resources – money – To the problem

To avoid irrational behavior, such as greed and fear during forex trading, we have to work hard against instinct. For many, this is impossible, and these are the people who should not work in Forex trading. These kinds of people are prey to their appetites. When your instincts overwhelm your will, it is a sign that you will be a passionate trader, which eventually results in a bankrupt trader

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