Overcoming Greed: 5 Proven Methods for Traders

Greed in trading clouds judgment and leads to regrettable decisions.

Discover 5 proven methods used by professional traders to overcome greed:

1/ Set Profit Limits.

Know when to take gains.

  • Decide on a profit percentage in advance
  • Exit the trade when that level is reached
  • Avoid the “it will go up more” mindset

2/ Embrace Small Wins.

Consistency over home runs.

  • Value steady, consistent gains
  • Understand big wins often come with big risks
  • Compound small profits over time

3/ Limit Trade Size.

Avoid oversized positions.

  • Risk only a fraction of your capital
  • Bigger isn’t always better; it can amplify greed
  • Stay within your comfort zone

4/ Reflect on Past Mistakes.

Lessons from history.

  • Review past trades lost due to greed
  • Understand the emotional and financial cost
  • Let past lessons guide future decisions

5/ Reinforce Discipline.

Habits counter emotions.

  • Regularly review your trading rules
  • Stick to them, especially in euphoric times
  • Discipline trumps momentary greed

To learn more about How you can Start Trading for a living, sign up below for my Free Training on the “7-Steps to Financial Freedom through Trading”.

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