The Two Sides
Fear stops us from acting when we should; greed pushes us to act when we shouldn't. Both distort risk perception and lead to poor decisions.
Signs of Fear
- Skipping valid setups after a losing streak
- Closing winners the moment they turn green
- Reducing size below plan when confidence dips
Signs of Greed
- Sizing up after a winning streak
- Removing stops
- Taking trades outside the plan because "it's obvious"
Neutralising Both
- Predefine risk per trade
- Predefine entry, stop, target
- Predefine what you'll do after 3 wins or 3 losses in a row
Key Takeaways
- Fear and greed are natural; unmanaged, they are destructive.
- A written plan is the antidote.
- Consistent sizing keeps both under control.