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Module 09 · Trading Psychology

9.2Greed

What you will learn
  • ·How greed appears in execution
  • ·Its typical consequences
  • ·Why targets exist
Core content

Greed can cause:

  • ·excessive leverage
  • ·oversized positions
  • ·holding winners too long
  • ·abandoning targets
  • ·overtrading
TLHQ insight

A target abandoned is a plan abandoned.

Example

A trader holds past a defined target expecting more, and gives back the entire gain on the retracement.

Examples use historical or illustrative data only. They are not live market signals.

Apply it

Count how many of your last ten trades were closed at their defined target.

Knowledge check
Check 01 · choice

Which behaviour is characteristic of greed?

Check 02 · truefalse

Overtrading can be a symptom of greed.

Key takeaways
  • 01Greed inflates size and erodes discipline.
  • 02Targets exist to end the decision.
  • 03Overtrading is a symptom, not a strategy.
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Educational content only. Nothing here is financial advice or a recommendation to trade. Trading involves risk of loss, results vary between individuals, and past performance does not indicate future results. Only capital you can afford to lose should be exposed to market risk.