Greed is good! But being too greedy won't make you a successful trader. Greed is one of the main reasons for a novice trader to lose money in the markets.
Why don't I try to catch the exact top or bottom?
Well. Because, I'm not that greedy! :P
Real reason is that I don't know what's going to be the exact top or bottom. :)
I know I can make more money if I try to catch the highest point or the lowest point of a price move. I tried to do that few years back & learned my lessons. I've lost more money than you can imagine due to this single trading error. It's normal when it comes to human instincts to go for a higher return in every possible time. It's not sustainable & you'll lose more money than you make if you try to catch the exact top or bottom in the long run.
What'll happen if you wait till the exact Top or Bottom?
- Missing out huge number of good trade entries because you're waiting for the exact Top or Bottom of the previous price move
- Your profitable trades will end up as big losing trades
- You'll have a great chance to be blinded by the volatility
- And you only realize what exactly happened after hitting your stop-loss or busting your entire account. Then you'll feel miserable, and ask these questions from you!Why didn't I fell in love with such a losing trade?Why didn't I see that big move coming?
Sounds familiar? Am I talking about you? ha ha!
How did I know that?
Yeah, every trader in this world goes through a similar learning curve in macro level. There can be so many changes in individual trader development processes when it comes to the micro environment. Good thing is that everything can be corrected once your trading mentor clearly recognized & addressed the route cause of your issue. But you have to truly accept your mistakes. Learning how to "let it go" is also a very important attribute of your inner development process.
"When the student is ready, the teacher will appear."
How to get rid of that urge to catch the exact top or bottom?
There's an only way.
You have to convince your subconscious that you don't need to catch the exact top or bottom in order to be a consistently successful trader !!!
Stay in touch for more updates. .
Good Hunting to you!
Sachith Sumanathilake
