Wednesday, December 7, 2011

Psychology of Emotions: 2 - Greed

The first emotion up is the big one...

EDIT: At the time this blog entry was posted I had a Youtube video here. That has been removed but I want the rest of my content to be remain. Nothing hidden no past mistakes ignored. All out in the open.

As investor and traders, we will encounter greed at nearly every step of our process. It comes up so often that as I mention in the video, we can think we are aware and careful of one type while succumbing to another.

Yet we have to have some amount of greed to make so how does one maintain balance? Whichever argument gets in the last word is a great indicator as to what your mindset is.
"This is really risky but I can make a lot of money. Lets get into this trade."
"I can make a lot of money but this is really risky. Lets get into this trade."
The difference is slight in words but large in mentality. The second thought process is more inclined to be using money management to protect themselves.

Disclaimer: The investments and trades in my videos and blog entries are not recommendations for others.
I am not a financial planner, financial adviser, accountant, or tax adviser. The financial actions I talk about are for my own portfolio and money and only suited for my own risk tolerance, strategy, and ideas. Copying another person's financial moves can lead to large losses. Each person needs to do their due diligence in researching and planning their own actions in the financial markets

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