EMOTION - GREED
Greed is a very strong force when it comes to trading because the whole reason why we start trading is to make as much money as we can.
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It’s natural for us humans to want more and more. A common mistake made by traders, is doubling up on a position when it has just moved into profit. The trader thinks that their analysis is right, so they double their risk not thinking about their money management rules which they have just broken.
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So now if there’s a sudden change in the direction and price moves against the trader, they have literally doubled their losses. No matter how confident you are in a trade set-up always remember that anything can happen in the market. Don't get too greedy.
Another scenario to avoid is; when you’re holding a winning position which has exceeded your target but you want more, the market reverses suddenly and you end up closing the trade short of your target.
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The moral of the story is:
Don’t get greedy, the key to being successful in trading is taking every opportunity that presents itself to you, do your analysis, apply risk reward, apply money management, place your trade with targets and stop loss and then review your trade afterwards.
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Stick to your targets, if you chose to extend your targets, bring you stop loss into a position which if it’s hit, you’ve still made a decent profit and you've controlled your risk. Complete control over emotions such as greed is a must.