7 Deadly Trading Sins, and How to Atone
News from Minyanville.com:

Despite our best intentions, the inherent fallibility of our human nature means that we occasionally commit grievous transgressions in our trading. Unfortunately, all of the research and investing capital in the world won’t guarantee investing profits if you’re succumbing to emotional self-sabotage as you trade. Trust us — even if you’re not a fire-and-brimstone type in your personal life, it’s probably safe to say that you’ve got a few investing sins on your conscience. To find out how to overcome the weakness of the flesh and transcend your baser trading instincts, keep reading.


Greed — or avarice, if you’re a die-hard medievalist — is probably the easiest of the trading sins to commit. After all, the purpose of investing is to make money, right? But there’s a difference between targeting reasonable profits and swinging for the fences at the expense of common sense.

To be clear, the desire to make money is not a vice in and of itself (at least, not in a capitalist society, it’s not). In fact, traders are most likely to commit the sin of greed after they’ve already entered a position… and the profits are beginning to add up. Once the greedy trader sees his returns top 25%, all he can think about is doubling that to a 50% gain. But once the position is up 50%, why not hike the target t…………… continues on Minyanville.com

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