Absolutely the most awesome piece of advice ever.
Thank you for it.
I just cannot avoid Greed and Fear. I become greedy when I am making money, but the trend reverses, eating profit and even leading to loss. I become fearful when the stock I buy is volatile and I sell out quickly, only to feel bad afterwards.
For example, today I bought ACC futures @ 955. The stock climbed to 962. I held on for more... (GREED). The trend reversed and the stock went down to 951... (FEAR). I was afraid I would lose money on this trade, so I waited a while, and sold off at 958. Later today, the stock made a high of 999. Lost Rs 10000 in profits in one single day due to greed and fear.
Greed and Fear suck. I hope I can become better...
Cheers!
Here is a scientific reason for it and i will let you know how to work on that problem:
There is a primitive 'rat brain/reptilian brain' which is deep inside our brain. Our ancestral who used to live in jungles climbed the tree when ever they use to see a tiger. This rat brain do- flight or fight response.
When you are trading, this rat brain gets activated and you will have fear if market goes against your trade and you will experience greed when market goes in favor of you.
Fear will direct you to close your position early and greed will direct you not to close the position in profit when it is the time to do so.
Over the last so many centuries, our brain has expanded giving rise to vast surface neocortex (thinking brain). Neocortex is your logical brain. How ever the rat brain has not been dead. It simply sits deep in your brain and when activated like in trading will give fear and greed feelings.
Trading is 100% Neuropsychiatric and Neuropsychological. Without working on psychological issue, it is next to impossible to make consistent gains even if a trader has got an 'edge'.
How to do that?
Make a conscious effort to DEACTIVATE your RAT BRAIN while you are trading. When you are long and if a position goes against you, your rat brain will attempt to activate giving you fear. Here, you have to make a conscious effort to DEACTIVATE it and stay calm and composed.
Practice, Practice, Practice. Over a period of time, you will be able to control the RAT BRAIN and money will flow into your trading account consistently.
However, I think it's important to have a decent capital and have realistic expectations from the markets. When I started, I felt it would be easy to make at least a percent a day on my capital... However, over the years I've learned that if I make 3-5% returns consistently, I'm a good trader. Even that is hard for me, so I'm a below-average trader... I wouldn't call myself a failure because I haven't yet quit. 
