≡ Menu

How To Control Greed And Fear While Trading

Open ZERO Brokerage FREE Share Trading Account - Buy and Sell Stocks Without Brokerage - Set GTT (Good Till Triggered) Orders on System and Forget

Traditional brokers charge a lot for brokerage; however, this broker does not charge anything for stock buying and selling. Also, you can set GTT (Good Till Triggered) order after buying a stock, so that the system can sell the stock automatically at your target price even if you are not monitoring the market. Only 25k is blocked for option selling with hedge. Also, you get a lifetime free account in Sensibull (virtual trading app & strategy builder) which charges Rs.800/-+GST a month. Learn option hedging strategy if you open an account today. It takes 5 minutes to open an account online. Click here and Open Free Account with Them Today >>

This is the most common problem with traders, especially the new entrants. No, actually the problem is widespread. Even experienced traders find it hard to control greed and fear while trading.

I remember one person who is my client told me once that he made 2 crore profit from almost the same investment and then lost approx. 3.5 crore and is now left with 50 lakhs.

So what destroyed his wealth? Greed not Fear.

What is an example of fear destroying wealth in stock markets?

It is more prevalent among mutual fund investors. When stock markets tumble they either stop their SIP or just withdraw all money in fear from their mutual fund investment.

Similarly, a trader in fear takes out a small profit when he could have made more just by waiting a few hours and when it comes to losses; they let the losses run in hope for a reversal. They do not cut short their losses in fear that if they do, they will lose money.

Ultimately expiry comes and they end up losing four times the profit made in last trade.

With a proper plan you can control greed and fear, but do you plan before a trade? Or still, speculate?

Here is one email that I received a few days back which is asking the same thing – how to control greed and fear.


How to Control Greed & Fear?

1. Never over trade. If you have 5 lakh in your trading account any trade you take must be with a stop loss of 1% of the entire capital in your account. Which means even if you trade with 1 lakh out of that 5 lakh, you must ensure that the max loss that you can take is 5000. Make sure you do not take more than 1% loss of your entire capital. This way if you win even 50% of the times – you will stay in the game for long.

2. If you lose you lose, do not get into revenge trading to get back the money lost.

3. 10% per month is simply not possible for long time. If you over trade you may lose 10% a month but not make 10% a month.

4. Fear taking naked trades. Means never take any un-hedged position in either options or futures. If you hedge your trade then the fear of losing too much money will automatically goes as hedging ensures you lose less. All the strategies in my course include hedging.

5. If you made huge money in one trade do not risk all that money in the next – you will lose all. So even if you are a good trader and doing good most of the times – keep 1% stop loss rule intact for your entire account across different segments and for your entire trading career.

If you follow the above rules you can overcome greed and fear.

TheOptionCourse.com © Copyright Since 2013 ® All Rights Reserved

Click to Share this website with your friends on WhatsApp

COPYRIGHT INFRINGEMENT: Any act of copying, reproducing or distributing any content in the site or newsletters, whether wholly or in part, for any purpose without my permission is strictly prohibited and shall be deemed to be copyright infringement.

INCOME DISCLAIMER: Any references in this site of income made by the traders are given to me by them either through Email or WhatsApp as a Thank You message. However, every trade depends on the trader and his level of risk-taking capability, knowledge and experience. Moreover, stock market investments and trading are subject to market risks. Therefore there is no guarantee that everyone will achieve the same or similar results. My aim is to make you a better & disciplined trader with the stock trading and investing education and strategies you get from this website.

DISCLAIMER: I am NOT an Investment Adviser (IA). I am an Authorized Person (AP) of a Stock Broker. I do not give tips or advisory services by SMS, Email, WhatsApp or any other forms of social media. I strictly adhere to the laws of my country. I only offer education for free on finance, risk management & investments in stock markets through the articles on this website. You must consult an authorized Investment Adviser (IA) or do thorough research before investing in any stock or derivative using any strategy given on this website. I am not responsible for any investment decision you take after reading an article on this website. Click here to read the disclaimer in full.

Disclaimer | Privacy Policy | About Me | Conservative Option Course | Bank Nifty Weekly Options Strategy
Find 200+ testimonials of my course on these pages too posted year-wise:
What Traders Say About This Course
Testimonials Year 2015
Testimonials Year 2015 Page 2
Testimonials Year 2015 & 2016
Testimonials Year 2016
Testimonials Year 2017
Testimonials Year 2018
Testimonials Year 2019
Testimonials Year 2020
Testimonials Year 2021
Testimonials Year 2022
Testimonials Year 2023
Testimonial of one of my client making 25k per week
Emotional Testimonial by a Young Woman Trader and Her Mother
Difference Between other Courses and Mine
What others charge for online courses
What People Say Just After Doing My Course
Bank Nifty Course Testimonials

My student gets the Winner's Certificate of Zerodha 60-day Challenge - Click here and Open Stock Buy and Sell Free Account with Them Today!!!

Traditional brokers charge a lot on brokerage, however this broker does not charge anything for stock buying and selling. Also, you can set a Good Till Cancelled order after buying stock so that the system can sell the stock automatically at your desired price even if you are not monitoring the market. Plus only 25k is blocked for option selling. It takes 5 minutes to open an account online. Click here and Open Stock Buy & Sell Free Account with Them Today >>

About the author: I started trading stock markets since 2007. However my first 3 years were losses. Then I dedicated almost 1 year on studying, researching, paper trading options and learned a lot in that time. Since 2011 I am trading Nifty options profitably. Call me if you need any help trading options on 9051143004.

{ 0 comments… add one }

Leave a Comment