Greed
The desire for larger gains that leads investors to take risks they would otherwise decline.
How it is identified
Test: position size, leverage or concentration rises without any change in the analysis that justified the original exposure
Unit
qualitative
In depth
Greed is not a useful analytical category on its own, but its behavioural signature is specific and measurable: positions get larger, stops get wider or disappear, leverage rises, and diversification falls. Each of those is observable in an account statement, which is why the behaviour can be monitored even though the emotion cannot. It typically follows a run of success, which self-attribution converts into confidence. The countermeasure is a written position sizing rule that does not change with recent results, since the rule made calmly is the one that survives.
Worked example
After three profitable months an investor raises the risk per position from 1% to 4% of capital. A run of five losses, ordinary at a 45% win rate, now costs 18.5% of the account rather than 4.9%.
Illustrative figures, chosen so the arithmetic is easy to follow. Not a live price and not a valuation of any company.
Educational reference only
This entry explains what “Greed” means. It is not investment advice and not a recommendation to buy or sell any security. Any numbers above are illustrative, not live prices, and nothing here predicts price direction or rates a stock. Consider your own circumstances and consult a SEBI-registered investment adviser before acting.