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Greed
psychologyAn emotion that causes traders to hold positions past their profit targets, oversize positions, or chase extended moves. Disciplined adherence to exit rules counteracts greed.
Related Terms
Fear
An emotion that causes traders to avoid entering valid setups, exit winning trades prematurely, or freeze during drawdowns.
Cognitive Bias
A systematic pattern of deviation from rational judgment that affects trading decisions.
Profit Target
A predetermined price level at which a trader closes a winning position.