Fear and Greed: The Silent Puppeteers of Your Trades
You’re in a trade. The market dips, and fear takes over. “What if it crashes further?” You sell in a panic, locking in losses. Hours later, the market rebounds, and you’re left wondering what went wrong.
Or maybe greed gets the better of you. Your trade’s in profit, but you think, “Just a little more.” The market reverses, erasing everything. Sound familiar?
These scenarios aren’t rare—they’re the reality of trading under the influence of fear and greed. Let’s unpack them:
• Fear:
1. Panic Selling: Acting impulsively to avoid losses, only to realize you jumped the gun.
2. Missed Opportunities: Fear keeps you on the sidelines, watching others capitalize while you hesitate.
• Greed:
1. Overtrading: Chasing every move, racking up fees, and increasing exposure to risk.
2. Holding Losers: Convincing yourself the market will “come back” while your capital drains away.
Here’s the truth: fear and greed only control you if you trade without a plan.
I never enter a trade without one. Before placing an order, I know:
1. How much I’m willing to lose if the trade fails—my risk tolerance is non-negotiable.
2. Where my stop loss is set. It’s my safety net against the unexpected.
3. My take profit targets. At least the first one, where I lock in gains and secure a win.
This plan is unconditional—a roadmap I follow, no matter the chaos.
Your edge as a trader isn’t in avoiding emotions—it’s in controlling them with discipline. If you want to trade smarter and take emotions out of . the equation, copy my lead copy trading account. Click here to copy my trades and 🚀💰. Cheers!