Greed is the biggest enemy for traders
In the last few days, I have been observing the price of Hive ever since it started pumping. The price of Hive went over 60 cents and then touched back 50 cents. It was oscillating around 55 to 60 cents a couple of times. I initially missed the opportunity to sell high and buy low. Many people thought that the price of Hive would touch 1 dollar soon. Let's continue to have that hope but it is good to make use of the opportunity right now and book some profits.
This is when greed play's an important role. I bought some Hive when the price was around 58 cents. I did not want to sell them until the price of Hive touches 65 cents. I even placed a sell order in the internal market. Unfortunately, that order was never filled. I then placed another order at 60 cents and that order was filled. I'm glad that I was able to finally sell some Hive for a good price. The biggest luck is that I was able to buy it back when the price reached 50 cents.
My friend used to trade with some random values. I'm someone who gives importance to whole numbers. If I want to sell something for 65 dollars, I will be placing the sell order only for 65 dollars. But my friend would place a sell order for something like 64.23 or 64.72. The decimal value is something less than 65 dollars and usually, it is some random value. To my surprise, his order will easily get filled and my order would take a lot of time to sell. There would be high resistance and huge sell orders before me. Sometimes I might end up not selling at all. This is also one type of greed I would say. Even though it is a little different, I learned not to worry about pennies when it is not going to create any big impact on the overall value.
When there is a good market for something, our mind will always start thinking that we have to wait and book a bigger profit. I have suffered a lot and I used to wait and lose many opportunities. If we have had the mind to sell it for a decent profit, we could have done some swing trades back and forth multiple times. But usually, if we keep waiting for the exact value we have in our mind, we will end up waiting but many small trading opportunities would be missed.
Trading requires a lot of patience. When we give way to Greed, sometimes it can end up disastrous. Usually, greed will take us away when we keep catching the falling knife. I have done this. I used to purchase a stock whenever it goes down. It keeps falling down and I would keep buying it. I once had a huge loss because of this greed.
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You're right. I learnt this while trading too. I realized that a lot of traders lose their money due to greed. Some people are so greedy that they want to make huge money at a time which may not be very nice