Hopefully this falls under trading.
I'm gonna make it short
There are two emotions i believe dictates trade and leads to either gains or losses. Fear and greed.
They are like every investors companion.
Which do you think is more dangerous?
Greed is more dangerous to me, there’s no way fear can win over greed in this circumstance. In greed, you’ll always be at lost no matter how good you can analyse the market and be profitable on them, once they greed sets in, you tend to lose everything again and again. Those people that are greedy are also patient traders, they usually become patient to the market even when they’re losing, hoping that the market will reverse and go back to hit their TP. While after making so many to exit the market, they might want to hold on and decide to make some decisions to increase their profits thereby losing woefully to the market again.
A person that is scared will have a proper risk management skills and that will avoid the person from losing a lot at trading like the one who is greedy will do. Fear is just a part of the market that signifies that you’re not yet perfect with the market and needs some more time to get use to the market trends while trading. So I think greed will make you lose a lot in trading than fear will make you.
To control greed, it is better to always follow the initial plan because if we change the plan because we are greedy and want to get higher profits, we can lose the best opportunity. And experience teaches us to be able to control bad emotions. Fear will also make us not dare to take risks to make investments, this is also a bad emotion that we should be able to control. Because when there is an opportunity and based on analysis will get profit, we can make a decision to invest, stay away from feelings of fear because everything is based on analysis and observation.
Well, greed and fear are two very important natural reactions that should be especially avoided when investing or trading since they have a bad impact on rationality. One strategy for this is to remain confined to a carefully prepared first plan. It should be evolved on sound analysis and strategy, incorporating limit of risk and profitable level of operation. This is where we feel like changing the plan for the sake of making more profits and missing other better opportunities, and not considering the fundamentals of Risk Management.
Moreover, experience is the biggest tutor knowing how, when and why to curb negative feelings like greed and fear. Each time that we find ourselves in positions that requires patience and self control we will be able to exercise these strengths and avert our desires to act in a haste in making decisions. There is also the issue of confronting the fear of risk taking, which is crucial if analysis directs at promising opportunities. Actually, getting rid of fear is not a call for a blind eye on risks; rather, it means that a person should make his decisions based on available data and observations, not fear. That way, we also become a calmer, wiser, and more consistent investor or trader, ultimately.