💰 Zurich Axiom 2: Greed – The Silent Killer of Profits
Greed is the second of the famed Zurich Axioms, and perhaps the most dangerous trap for any investor or speculator. It’s not just a flaw in strategy — it’s a flaw in psychology.
⚖️ Axiom #2: “Always take your profit too soon.”
This axiom challenges one of the most seductive temptations in finance — holding on too long, hoping for just a little more. The emotional drive? Greed.
🧠 Understanding Greed: More Is Never Enough
One of the most powerful insights noted is this:
“If we can conquer greed, that one act of self-control will make us a better speculator than 99% scrambling after wealth.”
Greed, in its raw form, isn’t merely wanting more. It is acquisitiveness — the desire to accumulate far beyond what we need or even deserve. It causes us to lose control over our rational judgment.
“Greed in context of 2nd axiom means excessive acquisitiveness — wanting more, more always more…”
When our wants become untethered from needs, we don’t just desire — we chase. That chase, more often than not, ends in regret.
🎰 Lessons from a Casino
As one casino manager aptly put it:
“If they wanted less, they would go home with more.”
In the world of investing, this means:
Don’t push your luck. Don’t stretch your luck. Define what success looks like before entering the game.
🔄 The Cycle of Speculation
Greed often emerges strongest after success. After a winning trade, the desire to ride the wave longer for an extra percent or two leads to delayed exits. But as noted:
“Always bet on short & modest. Don’t let greed get you. When you have a good profit, cash out & walk away.”
Profit isn’t real until it’s realized.
🛑 Practical Rules from the Journal
Cash out after a good run — don’t wait to squeeze out the last rupee.
Don’t fear regret — fear losing your gains.
Decide in advance — know your target profit and exit when you reach it.
Don’t check prices after selling — it’s a trap for second-guessing.
🧩 The Ending Illusion: “The race ends when you say it ends.”
Greed convinces you that a new position means a new beginning. That’s a lie.
“Every new position feels like starting position.”
But it’s not. Every trade must have an ending. If you don’t define it, the market will — and often brutally.
🏁 Reinforcing the Ending
One of the most underrated tools? Create a ritual of closure. Celebrate the exit.
“One excellent way to reinforce the ‘ending’ feeling is to rig up some kind of reward for yourself.”
Whether it’s a coffee, a walk, or journaling your win — signal to your brain that the game is over. You’ve won.
🎯 Final Thought: Don’t Let Greed Erase Your Gains
The markets reward discipline, not desire. When in doubt, remember:
“Always take your profit too soon.”
It’s not premature — it’s protection.
If you found this reflection valuable, subscribe for more investing psychology, timeless axioms, and battle-tested strategies from history’s greatest speculators.
✒️ Sumit Jain