Whether we admit it or not, many of us are lured into the world of trading because of the potential to make big money.
There are instances when traders are just in it to make profit at any cost , They do not concentrate on learning the process,mastering your trading skills. If you are trading everyday to make money and putting bets based on your emotions than slowly you will become addicted to trading and lose your physical and mental health.
I came across many trader who after wiping there account many times do not learn from mistakes, arrange money from somewhere open new account and again lose it all.No matter how much money he already lost in trading, he doesn’t take a step back to study the markets thoroughly or revise his trading plan.
Does he really have “passion” or is it merely an addiction? You see, an addiction for a certain activity occurs when a person becomes completely dependent on it. This behavior is typically shown by people who continuously seek out the activity no matter how much negative consequences it brings. What’s even worse is that people who are addicted can’t seem to stop the activity even though it’s starting to ruin their lives.
Here are a few questions you should consider asking yourself to know if you are addicted to trading
- Do You have a trading goal for a day/week/month, Or you just keep trading till market opens and close.
- Are you suffering from financial problems from your trading but still you want to trade.
- Trying to recover losses by taking excessive leverage.
- Does 1-2 trades have wiped your full trading account.
- Do I consider myself a big risk-taker, betting more than what I know I should on certain trades?
- Do i trade out of boredom
- Are there times when I trade just because I want to feel the excitement
- Do I feel the pain of losing more intense than feeling of satisfaction I get from winning?
If you’ve answered yes to all or most of the questions, take a deep breath and calm down. It’s not the end of the world. There are a few ways that you can get over your addiction to trading.
1. Leave trading for few days
Leave your trading desk for a while and treat yourself to a nice couple of days, a week, or a month and go for vacation in some remote area where there is no internet connectivity or go out and play a sport, Whatever you do, just be sure to give yourself time away from the charts.
Just like an elite athlete, you need time to rest too. This will give your mind some time to recover from market stress and help you come back to trading refreshed and full of vigor.
2. Keep a journal
By having a trade journal which details all your ideas, thoughts, and actions, it will be easier for you to see if you have been trading too much.
3. Know your limit
Set a maximum trading loss. It may be anywhere between 1-3% per day. Just set a concrete percentage of your account as your limit. It will help you exercise control over your trading which is something that those who have an addiction do not have.
Remember, it is your top priority to preserve your capital so that you may live to trade another day.