forexgreenland - Forex forum,Forex training, Forex signals, Forex mgt accts

What is it about money that makes us get so excited?

Is it the things we can purchase?

Is it the illusion of security?

Is it the power we might have over others?

Is it the promise of being more marketable to the opposite sex?

To the investor or trader, money is none of these things.

To the investor-trader, money is a way of keeping score. It lets
them know how well their system and the implementation of the
system is doing. Nothing more.

The benefits that money brings are a side benefit only after the
trading system has produced results. Not before.

Successful investors understand that emotions are the greatest
threat to successful trading. That's why a mechanical system of
trading is established.

If the data shows certain patterns, then there is a high
probability-not a guarantee- that the trade will be successful.

Each trade is taken one at a time, and traders understand that
creating wealth is a two step forward, one step back proposition.

A successful trading system imposes restrictions on trading
through pre-determined profit and loss targets. For example,
a trading system may stipulate that every trade must have a
stop-loss set at 8% and a profit target of 15%. If the stock or
other type of investment hits its stop-loss, so be it.

If a stock hits its profit target, the stop-loss is moved up and
the stock is allowed to "run" until stopped out by sliding (up)
stops.

Cut the losses (no matter what you feel) and let profits run.

Many traders and investors find such a mechanical way of trading
stifling and doesn't allow a trader's "true talents" to shine.

They chafe at the bit and want to show what makes them special.

This egotism is the real cause that prompts greedy traders to
abandon or not even have a system. It's not so much a matter
of material greed but ego need. Why do I say this?

Investment funds should be "disposable" in that investors don't
need the money for their day-to-day needs. Investment funds are
used to protect capital from the ravages of inflation and to build
wealth.

The greed factor usually pertains to the latter-building wealth.

But investors need to understand that both processes are long
term propositions and the most powerful influence is the affects
of time and compounding profits. Steady double digit gains will
blossom and expand many times-over time.

Greed is a short term emotion that can quickly destroy the
compounding effect by destroying the capital base on which
long term wealth can be built.

To control the natural greed factor, investors and traders need to
have a long term horizon and realize that the real game is won
through patience and discipline. Home runs are nice but an
aberration.

To win the game, one needs to hit for average and not be sucked
into the temporary excitement of going down town. Following a
well defined trading plan will help keep emotion (greed and loss)
out of your trading and allow probability to carry you along the
slow, steady course to success.

If you are looking for overnight wealth, go to Las Vegas.
They would love to see you.

I think I am a greedy person. I do not know how much I actually need, I always want more.I am trying not to bee greedy as it is not good for forex trading)))) any ideas on hot stop being greedy would be appreciated.)))))