2. Mastering Emotions

Greed Is Good…Or Is It?

Greed is the other side of the coin to fear. Greed is also similar to the fear of missing out, but more focused on a broader outlook instead of some smaller segment of the market.

Under greed, economic, political and financial news is viewed extremely optimistic, and bad news is ignored of waved-away as unimportant. Greed creates a self-reinforcing cycle of rising asset prices and positive outlooks.

Traders become so accustomed to rising asset prices, that they begin to ignore obvious signs of risk or negative outcomes.

Trying to squeeze every last penny out of a move is a surefire way to give up profits and even lose money. The best way to handle greed is just like how you would handle fear.

Set predetermined profit targets and when they hit, cash in! It’s not rocket science you just have to be disciplined enough to follow your rules!

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