Trading on Target: How to Cultivate a Winner's State of Mind

THE BIOLOGY OF GREED

According to the dictionary, greed is “an overwhelming desire to have more of something such as money than is actually needed.” But what does that really mean for a trader? Is greed simply an emotion like joy, desire, grief, or anger? Does it have more of an influence on us than just a transitory feeling or desire?

Although there is no available research on the biochemistry of greed, it is clear that greed has the power to send a chemical rush through us that compels us to put aside our common sense, our self-control, and our humanity. If other powerful emotional states create changes in our brains and our bodies, there is compelling evidence in the behavior surrounding greed to suggest that it does so as well.

“A Hit of Greed, Anyone?”

Most of us know traders, friends, and even members of our own family who are so highly susceptible to addictions that they smoke, drink, gamble, take drugs, or eat excessively to the point of self-destruction. These people are unable to stop. It is also possible that the addicted person will be the one who looks back at us in the mirror every morning.

Studies have shown that people who are addicted to one thing are likely to be addicted to any or all of the other possible addictive substances. Often, highly addicted individuals can lead successful lives if their addictions can be controlled or if they were persuaded by reason or circumstance to avoid contact with addictive substances when they were young. However, once they ...