It is good to be greedy for success and most of the time such greed reaps great benefit. However, the greed that I wish to talk about here is about the greed for booking profits on the stock market trading platforms specifically on the index futures and options with weekly expiries. It is a vicious cycle and god save those who fall into this without any discipline. In the recent times the trend of trading has taken a steep rise in India and most of the individuals suffered losses except for a handful investors who gained. The few investors who gained are either lucky or very disciplined with their trading approach. The lucky ones will most likely end up losing more than what they gained during the initial trades, and the disciplined investors would continue booking profits most of the time barring a few calculated risks and losses.
Trading on futures and options requires a skill with the ability to analysis the bar graphs, charts and other conditions which may impact the direction of the index movement. Many investors may acquire this skill irrespective of the learning curve, however not everyone will excel in closing the trade days in green. Further to my observation of various investors and their behavioural patterns I can say that it is all about the mindset and discipline that you show while you trade on the stock market. No matter how skilful you are, you would never be able to make profits out of these trades if you do not have the discipline to exit the trade at the right time without giving in to the greed of gaining more. One should be content with a certain level of profit and not be greedy for more. The greed for more affects your mental stability and thereby the decisions that you make while trading. It is such behaviour that leads to unwanted trades or waiting on trades to turn tables without exercising caution. It takes hard work to acquire the skill required to understand the charts and analyse the market trends and it all goes in vain if you do not have the focus and discipline required to take the timely decisions.
The investors mental attitude reflects on the trade book at the end of the day more than the skill that he/she has. And the greatest factor affecting this is the greed for more. Many will easily deny this and find it hard to accept that it was their greed that led to the red trade days, but the fact reflects all along. Trade for a better future by choosing the non-greedy options.
