💠 First: Definition:
A greedy trader is a person who seeks quick profit without relying on a clear strategy or logical considerations. You often find these traders prefer trading in futures contracts rather than spot contracts, which makes their trading more like gambling. It may succeed sometimes and may not succeed other times.
💠 Second: Question:
👈But the question that arises in this regard is why do many people prefer to trade in futures contracts?
There are four main reasons:
One: Small capitalists feel that spot trades are too slow to make money and want to use contract leverage to make quick profits.
Second: The intense happiness that dopamine brings from quick profits, especially for traders who have previously achieved profits in futures contracts deals.
Third: Saw profits (profit on the rise and profit on the fall like a saw) provided by futures contracts. You can make money in a rising market and you can also make money in a falling market, but this is not available in spot trading, as you can only make money in a rising market.
Fourth: Sharing the experiences of others who have achieved fantastic profits in a short time.
Fifth: False hope: There is a type that deals with futures deals as a straw to save their lives, believing that it is the only hope for self-recovery, and you find that most of these people are either in debt, or have incurred losses in transactions with money that they cannot afford, and they want to pay them back quickly by making profits from deals. Futures.
💠 Third: Conclusion:
It seems that greed, false hopes, and jealousy of those who have achieved large profits in a short time are all psychological factors that push many traders to throw themselves into the arms of futures contracts deals, and if this indicates anything, it indicates the great deficiency in controlling human emotions that are unable to resist unbridled desire. In achieving quick profit, even if this profit is just an illusion.
