A stock market trader should control greed. Especially given that unlike other professions or entrepreneurial ventures a stock trader continuously deals with money in and out of transactions. Hence greed takes a bigger picture for a person in stock market trading.

Greed is one of the most dangerous emotions of a stock market trader. There are three emotions like this which can ruin the profession of a stock trader. They are greed, hope and fear. Of these, greed always comes in the first. Because that is what makes many beginner or novice traders commit mistakes.

Don’t confuse greed with desire for money which is also in the form of optimism. Being optimistic is to find opportunities and not let yourself down even in the worst times. Optimism helps you look ahead for opportunities, avoid fear and courageously take chances of risk for expected rewards.

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A stock trader who does not control him/herself gets controlled by his/her greed. Often it manifests in the form of sudden or instinct decisions to enter into or exit out of a stock. Gradually a trader finds him/herself being controlled by it and regrets the pitiable situation.

A trader controlled by greed will not be able to stick to the original strategy or plan in entering, holding or exiting a stock. He/she keeps repeating these mistakes. This trader keeps entering or exiting from stocks out of momentary decisions. As this continues the traders loses the ability to do dispassionate analysis of the situation without which no strategy works.

But the stock market trader can control greed by having discipline in his/her activities. It is not enough to be disciplined in your earlier or major profession because you are likely to be not the same person when you start stock trading. Without discipline it is hard to control greed and becomes difficult to execute trades with right strategies that you initially planned before starting any trade.

Every stock trader has some amount of discipline in his/her trading activities. But one can learn to become a highly disciplined trader by regularly updating and reviewing trading records that help point out mistakes out of momentary decisions.

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