Greed and fear are very strong emotions in forex trading, which impress all forex traders. Even those with the most experience in this field still feel greed and fear. I still have a sense of greed. The fee is that there are traders able to escort, there are traders who are unable to escort. There are traders who know where to be greedy, were not to be greedy.
It outlines how greed is seen in forex trading, and how you can take advantage of other people's greed.
# Increase trading lot size
After trading for some time, you start to feel confident. Greed begins to feel and you increase your lot position to make more money. Risk? Is there anything at risk? You ignore the greater risk only because you see a greater return.
This is the easiest way to lose. Crowded forex traders tend to increase the size of their position in an "unbalanced way", increasing the trading lot to a size that does not match the trading capital in the account.
With money management escort who knows where, with just a few trading trends changing directions properly, it will make you a "strong depositor."
The verse that we usually hear, "it is the location of the lot size la ..". Though greedy. Hehe.
#HOLD Position is too long in a trading position
You carefully design trades and enter the market. And now, it is doing exactly what you have predicted and the market is moving towards you. Great! However, you didn't place your Take Profit or the pair hasn't reached it yet. He got closer, but he wasn't there yet.
So, can you let "your profits go on" and not get complacent about just a little gain? Greed tells you to do so, and fear tells you to close your trade. You can compromise by moving the Stop Loss to the return point of investment, or for a small profit. Guess the BE (breakeven) set is presumably. Too crowded traders tend not to do anything and let position trading continue to float and hope that the price will reach Take Profit or continue to move according to their will forever, while sometimes it seems "something wrong somewhere" on the chart movement. But continue to be sure of the hold position that you don't think will hit.
This may end in changing market direction and losing trades.
# Taking chances rather than other people's greed
As stated above, many profitable trading positions do not become reality, and they continue to float if the hold is too long. If these two open trades gather in a certain direction, they eventually need to close. When this is the case, the market moves in the opposite direction.
Recently, trading positions against the Euro have reached a milestone. Too many traders expect the Euro to keep falling and falling for a long time. If the selling of Euros reaches an overstatement stage, the Euro starts to change this flow by getting a "buy" at a low price. And it continues to increase in proportion to the US dollar and also to other currencies such as the Australian dollar.
Traders who are aware of this transcendent greed at the outset can benefit from this flow and get a pretty price in buying Euros or selling USD.
This is the professional way of trading, not only looking at technical factors but also looking at the psychology and emotions of other traders in the market.
