Who is an addict? It’s Simple! People who have uncontrollable behaviors can be considered addicts. The word “addict” may seem dirty especially with society’s perceived ideology of people sharing needles and sleeping on park benches. Reality is that addiction can be in any form and it can happen to you and to anyone else who has an obsession towards something. According to research, an addict’s brain is quite different than a non-addict’s brain because it processed drugs in a different way. For some reason, a part of the brain is being activated and that is when the addiction stimulates these behaviors.
Addiction does not limit to drugs alone. Hobbies or jobs such as trading can also be addictive. The process of trading includes extreme brain exercise plus strong will. It comes with problem solving and invariable analysis as skills based on performance become very fine tuned. This growth can be similarly linked to poker and chess players, and athletes. Nonetheless, trading can be a way of destroying your life because it can be quite addictive because you can develop the urge to succeed in an uncontrollable manner. The hard part about this kind of addiction is that you become addicted to the process and not to a substance such as drug and alcohol addiction. There is still some tedious research done in trading addiction but to stop yourself from becoming a trading addict you need to understand a few things.
What is addiction
When a drug user can’t stop taking a drug even if he wants to, it’s called addiction. The urge is too strong to control, even if you know the drug is causing harm.
When people start taking drugs, they don’t plan to get addicted. They like how the drug makes them feel. They believe they can control how much and how often they take the drug. However, drugs change the brain. Drug users start to need the drug just to feel normal. That is addiction, and it can quickly take over a person’s life.
Addiction can become more important than the need to eat or sleep. The urge to get and use the drug can fill every moment of a person’s life. The addiction replaces all the things the person used to enjoy. A person who is addicted might do almost anything—lying, stealing, or hurting people—to keep taking the drug. This could get the person arrested.
Can Binary Options Trading become addictive?
While it is possible for people to become addicted to binary options trading or other types of trading, it is not as prevalent as gambling addiction. The reason for this is that most traders are not investing for the thrill or excitement but they are investing to generate income for retirement, college funds for their children or other similar reasons. Because traders are investing for important reasons, they tend to be more cautious with their money. However, it is important for you as a trader to practice responsible investing just as you would practice responsible gambling. There is a chance you will lose money in binary options trading but if you are diligent and consistent you will be able to generate long-term, consistent profits.
The Temptations of Trading
You can make a lot of money from trading. And you can do it more or less on your own whenever you like, without a boss or being embedded in a company, both of which may be driving you around the bend. There are lots of ways to make money by trading, irrespective of whether markets rise, fall or stagnate. Also, you can do it fast, thanks to leveraging. In theory (sadly, far more so than in practice), you could become financially independent, which is a dream for so many employees. But this dream of fast cars and luxury is statistically likely to remain just that. The stats tell us that over 90% of amateurs lose pretty consistently. The fundamental problem is that this is a risky, speculative business, and the leveraging goes downward just as fast and as much as it goes upward. If it goes sour on you, you can lose your proverbial shirt and a whole lot more.
How people get addicted to trading
Even if you say that traders do not show addictive behaviors than the bigger population, statistics prove that most likely than not, at least a single trader in every 10 can be diagnosed with addiction. For traders with attention deficiency who cannot stand to be bored or who lacks stimulation, binary options trading can do the trick. For a depressed trader, trading can be an escape and be an immediate sense of gratification. Traders like this have to trade and then keep on trading even when they do not have an edge to do so. They eventually lose lots of money and lead to failure in like. This then creates hardships for themselves and their families.
For those who are addicted to trading it is not about the discipline and going with the rules. It is actually about gaining more profit and following rules is useless. The biggest solution is regaining their lives and being in control again. If you already see yourself in this article then you have to understand self mastery and not become a destructive instrument. Feeding emotional problems is not the real reason for trading but making money.
One question that you have to ask yourself is “ what will you do if cannot trade and if you are in trouble? If is like asking a drug addict “what will you do if you do not do drugs? If the answer to these questions is “Life would not be worth living” then you are an addict. If you answer with “ I can do some other productive things” then you can have a better life.
Signs of Trading Addiction
Fortunately, some tell-tale symptoms should alert you or your family or friends to a very real problem and danger. If you spend far too much of your free time trading – thus neglecting family, friends and a full time job – you need to worry. Similarly, if not only your life seems to revolve around trading, but you are putting more and more money into the process, disaster may be around the corner.
Feelings of general frustration, aggression and attempts to suppress other personal problems are other give-aways. In the worst cases, neglecting personal hygiene and physical health are also evident. And as for going around borrowing from every friend you can think of, or using one credit card to pay off another, no more needs to be said.
How to overcome your addiction to trading
- If you find that more often than not you are either in a trade, thinking about being a trade, or even “itching” to be in a trade, you are probably addicted to trading the markets!
- If you find it difficult to remove yourself from your computer after placing a trade or you are staying up until 3 in the morning watching every tick for or against your trade with frazzled nerves, you are probably addicted to trading!
- If you are man enough to admit that you are addicted to trading then read on for some tips on how to break free from this addiction, if you want to continue on in denial of your addiction, then it’s better to click off this post right now!
- People who are addicted to drugs or alcohol lack accountability to themselves, they don’t care about their bodies enough to stay disciplined enough to stay away from substances that harm them.
- Similarly, traders who gamble their money away and who are addicted to the markets, lack accountability, they are unorganized and undisciplined and so they need something to be accountable to. If you can manage to do this you will then have something to be accountable to.
- Traders who gamble and who are addicted to the markets actually reinforce negative trading habits and thus it can be nearly impossible for them to turn their trading around.
- Understand that NOT trading IS a valuable position. Another very important thing to understand that will help you break your addiction to trading is that NOT trading is often the best position to take.
- Think of it like this, if you are addicted to the markets and are over-trading, you are going to have many more losing trades than you would have if you were disciplined enough to simply not trade when you knew you shouldn’t have.
- Just to get back to break even you have to then hit enough winning trades to make up for all your losers. Whereas, if you simply had traded like a sniper and not a machine gunner, you could have avoided many losing trades and thus had a much more consistent and profitable equity curve.
- Don’t put pressure on yourself to make money. The reason why many traders get addicted to the market is because they put too much pressure on themselves to make money from their trading. This is a very dangerous thing to do.
- Traders who find success in the markets feel little to no pressure, they don’t put too much significance on any one trade.
- If you see trading as your “only option” at having a happy life, you are obviously going to become emotional the first time you lose a trade, then that’s going to kick off an avalanche of emotional trading mistakes and trading addiction that will only result in you losing increasing amounts of money.
- In short, remover your “need” to make money in the markets, and the money you so badly desire will actually come faster.
- Making sure you don’t “relapse”. As any addict knows, relapse is always lurking around the corner, waiting for you like an unavoidable temptation in the night.
- When you’re a trading addict, the situation is exactly same, and perhaps even more difficult than being addicted to drugs or alcohol, since you are still going to see your temptation (the markets) everyday.
- You have to consciously be on-guard against falling back into your old ways of being a trading addict.
- The easiest way to do this is to stay disciplined and organized by thinking about your trading like a business and following the trade plans, 7 Pillars Of Success and keeping a trading journal and using them with passion!
- You also need to keep in mind that you COULD lose money on ANY one trade, so keep that fact in your mind at all times while trading, and ask yourself before every trade:
- In short, there is no concrete way to avoid slipping back into your old bad habit of trading addiction.
- But, you can pre-empt all your actions in the market by doing the things I just described, this will greatly increase your chances of avoiding a relapse.
- Also, you should realize that trading is a life-long event!
- So don’t get too hung up on any one trade, your trading success is measured over months and years, not over days or weeks.
- Find other hobbies, don’t get obsessed with the markets, and realize the markets will always be there, so missing out on a good trade setup is not a big thing.
- By and large, traders who take a slow and controlled approach to trading the markets make a lot more money over their lifetimes than traders who take a fast and emotional approach!