what do you think in the truth of this aquation ..
share your opinion ..
and suggested the solution for it..
best trading and good luck
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what do you think in the truth of this aquation ..
share your opinion ..
and suggested the solution for it..
best trading and good luck
yes this is true i think that the big greed lead you to the big risk and the big risk lead you to the big loss or the big profit but if the trader win for once and tryto use it many time he will lose .
Equation is very true equation and can help trade become good trader if avoid the result of equation. If trader greedy and then use much risk too, trade most of time result to loss of money. Is good for trader not to greedy and always reduce the risk of trade.
this equation is one of the rule of forex....and we should follow it in order to avoid losses....if we do not do it...then we will suffer alot of losses and due to greed, we will make alot of mistakes during trading.....sometimes we need to take some risk to make profit , but it should be within limits and should not be more than 10% of our whole capital of account......
Yes, when ever the Greed is high Risk is also high.because you will try to make more and more ,but ultimately you may end up with making common silly mistakes like over trading or risking so much margin. This may lead to a big loss. I think it is better you make small constant profit than trying to maximize profits at once. I think this equation is valid for real life as well
indeed greedy can cause risk of loss. it's good before we trade, we already have a good trading plan. disciplined and consistent with the plans we have made will be able to avoid the greedy nature that is in us. so that we can consistently profit in the trade.
I think you are right that greed and risk are associated with lost in directly proportional way.
I guess people should not just stay with the learning equations but also know how to apply them.
i just couldnt make any sense of that equation. may be because i'm a dumbo but as i read it greed less than or equal to greater than risk equal loose donsent make any sense to me. can any one of u einstien's explain.
we must implement a trading plan to avoid greed in trading ..
many traders fail in this business because they do not have a trading plan, so they treat trading account such as gambling and hoping to make lots of money in short time