Hope , Greed and Fear
Hope is an very bad emotion which is destructive in your trading. How many times have you found yourself hoping that a position will move in your favour or hoping that a loss you have been riding will turn into a profit ? If you find yourself hoping that a loss will turn into a profit , then you are looking for trouble. Do not be too hopeful during trading … Cut loss and stop hoping is the solution.
Greed is what causes us to hold onto winning positions though we know that they should be closed out. Greed causes us to carry too large a position , to pyramid positions as prices move in our favour , and to ignore facts which clearly indicate that our position is wrong.
Fear is what prevents us from taking a trade when are supposed to. Fear is what prevents us from holding on to trades and riding profits when we hear rumours which move market against us temporarily and from adding to positions when the time …
