If you are a player in the trading game, you probably have some semblance of greed rattling around somewhere in your head. Otherwise, you wouldn’t have even entered this world. We all get into it for money, whether it’s to have “f* you money” or to simply help cover bills and take the financial edge off. We’re all here for the same reason.
I have moments where I talk myself up and say things like “Nah, I’m different. I don’t want or need the money derived from this venture. I’m here because I love it, because I love the challenge and how it allows me to grow beyond what I thought possible.” Which, of course, is the truth, but only partly true. Honestly, back 5 years or more now, I got into it because I wanted a new career, independence, and another way to pay the bills. I wanted a solid skill that I could count on for financial security, and I wanted to get to the point where I didn’t have to worry or think much about money any longer.
I do not think I am unique in this, not at all. I’m pretty sure almost all of us have gotten into the markets not because of the great personal challenges and personal growth that it promises, but for the obvious reason: money and power. With money comes power, right? We all want money to have the power to do whatever we want and to truly live out those wildest dreams that we’ve concocted for ourselves. The allure is the same. If you are human and honest, you got into this game to see how much you could get from it. Nobody comes here for just the challenge itself.
Yes, the challenge itself should be enough. I believe where I’m at right now with trading, personally it’s just as much about the growth process as it is the financial gains that I see. It certainly didn’t start that way for me, though. In the early days of trading, I was focused on the profits, watching it tick by tick. Up or down, I judged myself on whether it was a green day or a red day. It took me years to realize that I had this backward. Focusing on the craft and focusing on the actual process was what was going to lead to more money, not the other way around.
Greed, though in many ways I’ve come to terms with this beast, I realize it’s still there. Though I’ve shifted my mindset into a growth-focused drive, that whiff of greed still crops up every now and again. After examining this, greed didn’t surface how I imagined it would for me. I wasn’t slow or reluctant to take a winner off the table. I’ve always done a good job of taking the win while I could grab it if it hit all of my goals and fulfilled my plans. Nope, for me, it was either trying to “nail” tops or bottoms, and the other was I’m usually in position way too early.
My semi-obsession with really trying to be perfect is a downfall. The old trading saying goes, you don’t need to nail tops or bottoms because the meat of the move is more than enough. I find myself still trying to get in on the very beginning of a move, so I freak out if I’m pennies behind where I think I should be on my entry. The markets aren’t clean, the markets aren’t perfect. So let’s not be surprised when they’re extra volatile on the day you want to jump in.
Letting go and accepting imperfection has been a process for me. I have learned that I cannot achieve perfect timing or perfectly nail the bottom of a trade, no matter how much I would like to. It is the greed in me that drives me to try to capture every penny of a move and seek absolute perfection. But the reality is that it’s just not possible. I have to come to terms with this fact and let go of the need for perfection.
Another aspect of my greed that I struggle with is jumping into a trade too early and with too much size. This has been a major issue for me over the last few years. When I miss out on opportunities, FOMO sets in and I become too aggressive. I am driven by the fear of missing out on the move and wanting to catch the bottom or the very start of a leg up. However, getting in too early leads to many shakeouts, causing mental stress and unnecessary losses. It’s all because I was greedy and wanted the entire move for myself.
Greed is a natural human instinct, but it can be both a blessing and a curse in trading. It can drive us to take risks and seize opportunities, but it can also blind us to the reality of the markets and lead us to make poor decisions. By acknowledging and examining our own greed, we can learn to work with it rather than against it, and use it as a tool for growth and success in trading.
In the end, it’s important to remember that trading is not just about the money, but also about the personal challenges, growth, and fulfillment that it can bring. By balancing our desire for financial gain with a focus on process, craft, and self-improvement, we can achieve a more holistic and sustainable approach to trading. So let’s embrace our greed, but also keep it in check, and strive to create a trading practice that is both profitable and fulfilling.
