Responsibility in Trading – How to Overcome Greed as a Day Trader

Why Responsibility Matters Most for Day Traders

Mark Douglas, in his classic Trading in the Zone, makes it clear: responsibility is the foundation of trading. Your capital is your lifeline – without it, there is no trading. If you treat it carelessly, as if it were “money to burn,” the market will punish you immediately.

The Market Delivers Instant Punishment

Unlike in many areas of life, the market delivers punishment instantly. A bad entry equals loss, frustration, anger, sadness. Every trader knows this emotional rollercoaster. The key is to stay calm, analyze mistakes, and avoid repeating them.

Greed – The Trader’s Greatest Enemy

The hardest part of trading is not entering a trade, but closing it. I had a plan: $500 in June, $600 in July, $700 in August, $800 in September. It started well, but after one spectacular win (+$12,500) I fell into the trap of greed. I believed trading was easy and that I could always win. The market taught me a painful lesson – right after that, it squeezed me like a lemon.

Carelessness Leads to Losses

After a few wins, I started increasing my position size: from $1,500 to at least $6,000 per trade. I was convinced I could always find the next Top Gainer. The result? A streak of losses. Trading is deceptive – nobody knows what you’re doing until you brag or go broke. This anonymity makes it easy to slip into dangerous behaviors that lead to financial and emotional losses, and sometimes even debt.

Returning to the Plan – The Road to Stability

Once I identified the real problem – greed – I returned to a simple daily profit plan. Results improved almost immediately:

• July 24: +$800

• July 25: +$700

• July 28: +$395 (was +$825, but greed got in the way)

• July 29: +$55

• July 30: before pre-market

A Day Trader’s Takeaway

Trading is not just a battle with the market, but a battle with yourself. Greed is the greatest danger, and responsibility is the key weapon. Only by cutting losses and sticking to your plan can you give yourself a chance at consistent profits.