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Greed And Trading

As nifty hit today 10k everyone celebrated it with great enthusiasm then suddenly after 10 minutes of market it bleeded red.The celebration continued and stories of nifty continued to be shown on some blue channels.I am very much sure that many of traders are still stuck at higher zone(view is only intraday) and many of them are holding nifty by shorting it and expecting a crash in the market.
Both the case is of greed but with a different view on market.As we enter into a trade greed comes in hand to hand in it to earn handsome amount of money and many a times after booking profit or loss if the stock moves in another direction where our profit was probably due we always regret our decision and next time when we trade we enters with more greed.Now if this trade also goes wrong we don’t book loss either we give reference to our previous trade where after booking loss stock moved in that direction where we were expecting.Ultimately our loss increases and a time comes when we are forced to close our position with a huge loss and now we end up in a situation where we can’t even initiate any further trade.
Many of traders would have experienced the above case in their trading life and some of them continue to do this.The right approach should be to go with a strict target and stop loss.If the target is being hit book your profit and don’t see the stock after booking profit and if stop loss is hit book your loss and focus on another trade with more signals to support your trade.
Greediness has always resulted into a loss to everyone.You all must have heard the story of money where he stuck his hand in a vessel because of greed.Even king Midas was also greedy and what was his end we all know that.
We all should trade with a proper strategy and always practice our methodology rather focusing on making money in a very short span of time.
“Happy Investing”

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