While greed can lead to short-term gains, it is generally detrimental to traders over the long-term. Here are some reasons why:
Leads to excessive risk-taking: Greed can cause traders to take on excessive risk in pursuit of higher profits, which can result in significant losses if the trades go against them.
Clouds judgment: Greed can cloud a trader's judgment and lead to irrational decisions, as they become solely focused on maximizing profits rather than following a well-planned trading strategy.
Increases stress: The pursuit of excessive profits can lead to increased stress levels and emotional distress, which can negatively impact a trader's mental and physical well-being.
Impairs learning: If a trader becomes too focused on profits, they may not take the time to analyze their trades and learn from their mistakes, which can impede their long-term growth and success.