Greed and Pride: A Traders Best Friend!

Last Week I walked my readers through a hair raising experience that I went through years ago.  The resulting discussion highlighted ways to use your fears to your advantage!  This week I’m going to dig into greed and pride to show you how the rest of The 4 Deadly Sins of Trading can play a role for retail investors.

Greed

Let’s face it, if you aren’t driven by greed – you’re going to find it tough to reach your financial goals.  Success as a retail investor hinges on finding healthy (risk averse) ways to feed your greed!  One trick to help yourself avoid the downside of greed is to focus on percentages versus dollar amounts.


Here’s a quick example, when a $1K momentum stock trade hits $100 in profit over 8 weeks, there’s a choice in how you perceive the success of that trade.  You can look at it as just $100 or you can look at it as 10%!  While both points of view are technically accurate, measuring this trade as a 10% profit is a healthier way of thinking.    


Get yourself into the habit of growing your portfolio at 5% a month over the course of the year.  I don’t care what that dollar amount you’ve got in there, 60% of growth per year means you’re going to be pretty happy!  

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Amin Hemani
In 1992 Amin had an epiphany while attending a 2 day training course hosted by InvestTools. He realized that he couldn’t leave decisions about HIS money to brokers or advisors. It was at this moment, Amin decided to take control of of his financial future.



Amin spent the next 20 years learning how to maximize his profits and minimize his losses and in 2014 he took over as the IBD® coordinator for the Westchase and Tampa Meetup groups. This experience gave Amin the chance to meet many like minded individuals who were earlier in their investing journey

In March of 2015, Amin began his blog, Investor Spotlight, in an effort to share the knowledge he had accumulated and the lessons learned over many years of trial & error. Moving forward, Amin wants to spread his message beyond just his Meetup groups and blog by providing mentoring and coaching on the process he has come up with over the last 2 decades.
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Amin Hemani

Amin Hemani

In 1992 Amin had an epiphany while attending a 2 day training course hosted by InvestTools. He realized that he couldn’t leave decisions about HIS money to brokers or advisors. It was at this moment, Amin decided to take control of of his financial future.Amin spent the next 20 years learning how to maximize his profits and minimize his losses and in 2014 he took over as the IBD® coordinator for the Westchase and Tampa Meetup groups. This experience gave Amin the chance to meet many like minded individuals who were earlier in their investing journeyIn March of 2015, Amin began his blog, Investor Spotlight, in an effort to share the knowledge he had accumulated and the lessons learned over many years of trial & error. Moving forward, Amin wants to spread his message beyond just his Meetup groups and blog by providing mentoring and coaching on the process he has come up with over the last 2 decades.

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