Edward George P483 Martin#21

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What is greed in trading and how does it affect performance?

Greed pushes traders to hold winning trades too long, overleverage accounts, or chase unrealistic returns. While ambition motivates success, unchecked greed often leads to ignoring stop-losses and abandoning risk rules. For example, a trader might risk 10% per trade to double profits quickly but instead blow up an account after a losing streak. The antidote is defining profit targets, sticking to position sizing rules, and focusing on long-term growth rather than quick riches. Balanced ambition, not greed, drives sustainable trading success.