Have you ever seen a baseball player swing so hard at a pitch that he lost his balance and fell over when he missed the ball?
What about a golfer who tried to hit the ball a mile, but missed it all together?
Both of these are examples of getting greedy. We may not think of it that way, but it is. After all, how different is that from going after that trade that will double your trading account in one fell swoop? It really isn’t. We normally think of greed involving money, but that’s really only one form of it.
The point is that greed -Â no matter what form it takes -Â make us act foolishly. We forget our discipline, our rules. Yes, sometimes it works out, but usually the result is negative.
And yes, I did once swing so hard at a pitch in Little League that I ended up on the seat of my pants when I missed, but I haven’t yet completely missed a golf swing, though I’ve hardly ever played. 
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About the Author
John Forman, author of this blog, has traded for more than 20 years, is a professional market analyst, and authored The Essentials of Trading. He is an active participant in trading forums, consults for trading related businesses, as published literally dozens of trading articles, and has been quoted in a number of books and in the media.
** See John’s full bio.
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