It has been demonstrated how important the concept of discipline is for the Forex trader. Without this sort of control of the emotions, the currency market can be a dangerous place to venture into. Reason needs to dominate the trader’s psyche as far as possible and coupled with the detailed understanding of the way the forex trading system operates; it should be possible to trade consistently at a profit.
Often the danger to this is that after a period of successful small wins, which naturally encourage confidence, a trader may be tempted into looking for a big position and a much higher profit. Just because there is a potential for a significant gain does not necessarily mean it is the right trade to make. It is here that the discipline needs to be exercised to ensure that the trade fits well with the agreed strategy. There is no intrinsic harm in being a little more ambitious when the conditions seem to be appropriate, as that is sometimes where the big money lies. Yet an emotional or irrational trade can undo much of the hard work that has gone before.
The greed factor affects people in different ways, and if a trader consistently falls prey to it in the belief that a big win will sort any other problems out then it is quite possible to fail. As with any possibility of making or losing a large amount of capital, it is best to think carefully before making a decision.