Greed. It’s that sneaky little voice in your head whispering, Just hold a little longer… or What if it doubles from here? If you’ve been in the trading or investing world for even a hot minute, you’ve heard it. And if you’re like me, you’ve probably listened to it too—maybe more than once.
Learning how to control greed in trading and investing didn’t happen overnight. It came from experience, hard lessons, and a few humbling reality checks. In this article, I’ll share how I recognized the role greed was playing in my decisions, and how I gradually took control back. Whether you’re a day trader or a long-term investor, these insights can help you stay grounded and make smarter choices.
The First Time Greed Burned Me
Let’s rewind to my early investing days.
I had bought a small-cap stock at $5 after reading a glowing review on a finance blog. A few weeks later, it hit $9. I was thrilled. But instead of locking in gains, I said to myself, “I’ll sell when it hits $10.” Then $10 came, and I thought, “Let’s wait for $12.”
You see where this is going.
The stock fell back to $6 within days. I panicked and sold at $5.80—just to “save face.” The profit I could’ve had? Gone. All because I wanted more.
That was the first time I realized greed had taken the wheel. And I needed to learn how to take it back.
Recognizing Greed in Real-Time
Before you can control greed, you have to know what it feels like. Greed isn’t just wanting to make money—it’s the irrational belief that you must make more, no matter what.
Here’s how it showed up for me:
- Ignoring my exit plan
- Moving stop-losses farther away “just in case”
- Doubling down on a trade that was already green
- Feeling anxious when watching others profit more than me
- These weren’t strategic decisions—they were emotional reactions. And that’s when I started to treat greed like an opponent I needed to understand.
Step 1: I Started Setting Concrete Goals
One of the first tools I used to fight greed was goal-setting. Not vague goals like “make more money,” but specific ones like:
I’ll take profit at 15% gain.
“I’ll sell half my position at resistance and trail the rest.”
“I’m aiming for $200 in profit per week.”
This gave me something objective to focus on, rather than just chasing the next high. When I had a target, I was less tempted to keep gambling.
Pro Tip: Make your exit plan before you enter the trade. If you wait until emotions are involved, greed is more likely to call the shots.
Step 2: I Practiced Taking Partial Profits
This changed my life. For real.
Instead of holding onto a full position, hoping it would moon, I started taking profits in chunks. I’d sell 50% of a position after a decent run-up, and then let the rest ride with a stop in place.
That way, I locked in gains—but still gave myself a shot at more if things kept going my way.
This strategy helped me stay calm. I wasn’t sitting there watching a big unrealized profit turn into a loss. And it made me feel more in control—which is the antidote to greed.
Step 3: I Learned to Walk Away
I used to stare at charts all day. Even after making a good trade, I’d keep looking for “just one more.” And guess what? That’s when the worst decisions happened.
Now, I have a rule: once I hit my daily or weekly profit target, I walk away. I close my charts. I shut the laptop. I do something else.
It’s kind of like going to the casino and leaving after doubling your money. Most people don’t. But the ones who do? They win.
Step 4: I Stopped Comparing Myself to Others
This one stung.
A big driver of my greed was seeing other traders post their “$10K in a day” screenshots on Twitter or Reddit. Suddenly my $300 win felt pathetic. I’d feel like I was missing out or not trying hard enough.
But here’s what I learned: you never see people’s losses.
Now, I focus on my journey, my strategy, and my goals. Trading isn’t a race—it’s a game of longevity. Comparing yourself to others is the fastest way to blow up your account and your mental health.
Step 5: I Reviewed My Mistakes (Without Beating Myself Up)
After every week, I look back at my trades. The ones where I got greedy are easy to spot. Usually, they end with me holding too long, buying too high, or revenge trading after missing an opportunity.
Instead of shaming myself, I ask: What did I learn?
For example:
- “I ignored my exit rule because I wanted just a little more profit.”
- “I chased that breakout because I felt FOMO, not because it fit my setup.”
- Documenting these moments helped me build awareness. And the more aware I became, the easier it was to pause the next time I felt that greed rising up.
Step 6: I Shifted My Focus From “Making Money” to Making Good Trades
This was a game-changer.
When your only focus is on profits, greed has a ton of room to grow. But when your focus is on executing your plan—win or lose—you take the pressure off.
Now, after a trade, I ask: Did I follow my rules?
If yes, then it was a good trade—even if it lost money.
That mindset shift took time, but it brought peace. And ironically, it also brought better results.
Final Thoughts: Greed Will Never Disappear—But You Can Manage It
Here’s the truth: you won’t ever completely eliminate greed. It’s human nature. But you can learn how to control greed in trading and investing.
For me, that meant:
- Setting and sticking to clear goals
- Taking partial profits
- Stepping away after wins
- Focusing on process over profit
- Avoiding comparison
- Journaling my trades honestly
Now, when that greedy voice creeps in, I hear it—but I don’t obey it. And that, my friend, is freedom.
Next Article To Read: How I Stopped Making Impulsive Trades (And You Can Too)