Financial trading can be just as addicting as gambling or drugs. There are even psychologists who specialize in treating people with financial trading addictions. This article can be useful — but it’s not a substitute for professional help, so make sure you see a counselor if your financial trading addiction becomes overwhelming.
We know that a full-time trader is likely to spend more than 80 hours a week analyzing markets, looking for trades, and then pulling the trigger. But many traders like to trade part-time since it is not necessary to watch markets all the time. Still, there is the chance of great rewards. Even if you trade only part-time, and even if you use only leverage of 30:1 on your trades, you may still make more money than you can as a full-time businessman.
Some people are so focused on having the lifestyle of a high-rolling trader that they lose sight of the potential risks associated with using their own money to make trades.
These people have an addictive personality, which may make it easier for them to trade recklessly and compulsively. Since trading addictions can be hard to break, people with this problem are well-served by seeking out help and support when they feel the need.
If you’ve been having trading problems, you may be able to use the information in this article to identify and solve the issues.
1. As with any addiction, the cycle of success and failure can be self-perpetuating. When things are moving in a positive direction, you may feel more confident about your trades and take more risks as a result. When things go poorly, it’s natural to panic and try to recover your losses as soon as possible.
You’ve noticed that whenever you make a profit, you feel good. Whenever you lose money, you feel bad. Our brains are very good at recognizing patterns. For example, if we experience some success doing something, we’re more likely to want to repeat it and expect the same positive results.
At the moment, you may feel that if you fail in something, you’ll try harder. But in the long run, this will often cost you more time, money, and even your self-esteem. People often get so caught up in their desires to make money that they fail to see the significance of failure.
People with different brain structures may react to the same situation differently than you. Some will immediately see a problem and fix it; some will try but fail, and some won’t even think about it. Researchers have observed that the brains of some people may be better equipped to deal with loss than the brains of others, leading those people to try new strategies if they feel like they’ve just lost something.
2. Here are the signs to look for if you think you’re at risk for this addiction. Even if you’ve never experienced any of these symptoms, it’s always a good idea to be aware of what they are.
- Are you spending too much time day-trading? Are you neglecting other activities? Are you risking your job by trading online during business hours? Are you skipping important family or social events to place trades?
- Are you spending more money than you can afford? Are your trading expenses getting out of control? Or maybe you’re having trouble managing your existing account.
- Are you frustrated, feeling aggressive toward others, or more moody than usual? Do you find yourself avoiding other people, or not caring about your personal hygiene?
- Are you having hardships with your financial situation? Do you have money problems that you are trying to solve through loans?
3. Taking action is important to begin the healing process. You might need help with recovery. It can be hard to recover from addiction on your own. You may have withdrawal symptoms if you try to stop the addictive habit on your own. It’s important that you make a strong commitment to staying away from compulsive trading so that you can be successful in recovery.
Rely on the support of your friends and family. Let them help you as you move forward.
If you find yourself trading in a way that is out of control, it may be time to seek help. You can consult a professional who specializes in gambling addiction, or speak with a therapist who specializes in trading addiction.
Be aware that trading addiction is often a symptom of other problems, and facing those problems head-on will be a big help in overcoming your addictive trading.
If you recognize yourself as addicted to trading, there is help available. The negative impact that addiction to trading can have on your finances, emotional well-being, and/or your health may be dramatic. If you’re ready to turn your life around and make a fresh start, treatment can give you the skills you need to do just that.
When you trade, you’re essentially making decisions that will help improve your financial situation in the future.