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Random article: Greed and how to cope with it

Setting to Forex trading, people face many hindrances preventing them from earning. One of the main hindrances in trading is greed of trader. Even if traders elaborated their own view on market and gained a rather good experience of observation of trading situations, they often do not manage to overcome greed and under such conditions accomplishing stable profitable results is a rather hard goal. Let's consider the situation, when this impediment starts blocking: The most frequent moment is when upon opening position and setting Take Profit, trader sees that price moves well towards it and starts shifting this Take Profit hoping to take more than planned; each moment trader's appetite goes up. In the result, upon reversal of price, he cannot close it cause remembers that a while ago profit was higher and greed starts defeating trader. More often, this trader can close earlier profitable trade by Stop Loss because of hope that price will get back to previous profit point.

Popular article: The Pareto principle in trading

According to official sources, the Pareto Principle was named after the economist and sociologist Vilfredo Pareto, who was born in Paris in 1848, but was Italian by nationality. From 1906, he began to notice certain economic patterns. For example, he noted that 80% of the land in Italy belonged to 20% of the population. Then, he formulated the principle, noting that 20% of the pods in his garden contained 80% of the peas. These and other regularities led to the fact that Vilfredo Pareto developed the “80/20 Rule”, which in general form looked as follows: 80% of the effects come from 20% of the causes.

New in Encyclopedia

19.07.2019 New article added «Trade»

15.05.2019 New article added «Forex spot trading»

15.05.2019 New article added «Forex trading secrets»

15.05.2019 New article added «Swing trading Forex»

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