Arguably, the most difficult thing in trading securities is controlling fear and greed. Fear can keep a trader out of the market when they should be in – and in a market when they should be out. Controlling fear and greed is not an easy task. I learned many years ago that the only sure way to control fear and greed ()at least for me) was to have a specific set of conditions and lead you to a market entry – and a specific set of conditions that tells me it is time to exit. I will tell you how I do it, but to get the set of conditions you will have to get my eBook and do a bit of reading and analysis.

For a trade entry, I have a firm set of conditions that must b met to justify the trade. Immediately after entry, I monitor those same conditions very closely – and if things change and render my conditions invalid, I exit at that point in time.

If I enter a market and the trade goes my way, I have a set of conditions that will tell me when the party is about to end, and I exit when those conditions are met. I do not consider the money angle at all in making these conditions. That pretty well takes fear and greed out of the picture.

Do I win all the time – of course not. But I win often – like today – a very difficult day due to the thinness of the trading activity – I made four trades in two markets without a losing trade. Three winners in GBPUSD and one in FOREX – in the 10 Year US Bond.

None of the four were real big winners, but the four cumulatively, made for a good short day’s work.

If you can learn to control your fear and greed – it will make you a significantly better trader.

 

6 Responses to Trading Tips – Controlling Fear and Greed

  1. I have been browsing online greater than three hours lately, yet I by no means discovered any attention-grabbing article like yours.
    It is beautiful value sufficient for me. In my view, if
    all webmasters and bloggers made good content as you
    probably did, the net can be a lot more useful than ever before.

  2. my video says:

    Hmm it appears like your site ate my first comment (it was extremely long) so I guess I’ll just sum it up what I submitted and say, I’m
    thoroughly enjoying your blog. I too am an aspiring blog writer but
    I’m still new to everything. Do you have any tips for first-time blog writers?
    I’d genuinely appreciate it.

  3. Good web site you have here.. It’s difficult to find high-quality writing
    like yours nowadays. I truly appreciate people like you!
    Take care!!

  4. quest bars says:

    I enjoy reading an article that will make people think.
    Also, thanks for allowing me to comment!

  5. Hey very cool blog!! Man .. Beautiful .. Amazing .. I will bookmark your blog and take the feeds also…I’m happy to find numerous useful information here in the post, we need develop more techniques in this regard, thanks for sharing. . . . . .

Leave a Reply

Your email address will not be published. Required fields are marked *

Comments Protected by WP-SpamShield Spam Blocker

See the Music of the Market

The unique trading method that is Trading Between the Lines