If I was a trading doctor, I would look for these 10 symptom in a trader before I diagnosed them as being greedy.  Greedy trading can result in blindness to danger, dizziness for profits, and a loss of trading capital. Look for these ten warning signs :

  1. Greed causes the trader to only look at the best case scenario for profits, and ignore the worst case scenario.
  2. Greedy traders trade WAY to big a position size.
  3. A Greedy trader’s #1 priority is getting rich quick, while ignoring the risk of ruin.
  4. Traders that are greedy tend to believe they can have returns bigger than the best traders in the world right out of the gate.
  5. Greed makes traders set unrealistic expectations on each trade.
  6. Greedy traders tend to buy stocks that are down 50% believing they go back to where they were.
  7. Greed distorts a trader’s focus, so they only see the money, and not the homework involved in making the money.
  8. Traders take trades where the odds are heavily weighted against them, because they want to make huge returns on one trade. (Far out of the money options)
  9. Greedy traders trade with no plan and no method; they are just pursuing profits randomly.
  10. Greedy traders are always looking for the easy path to money, and not to the real path of hard work and experience that will lead to success.