12.13What is greed?
1What is it?
Greed is wanting more than is reasonable: refusing to take profit, over-leveraging, chasing "multibaggers".
2Why does it exist?
Greed turns winning trades into losers and makes people take risks they can’t afford.
3Practical use
Set targets in advance; book partial profits; never use leverage you don’t fully understand.
4Quick revision
- Wanting too much, too fast.
- Leads to excess risk.
- Pre-set targets help.
5Knowledge check
Q1. Example of greed?Show answer
Holding a winning trade past the target until it turns into a loss.
Q2. One defence?Show answer
Pre-set targets and partial profit booking.
Q3. Is wanting profit greed?Show answer
No, wanting unrealistic profit with excessive risk is.