Financial trading can be just as addicting as gambling and drugs. There are actually psychologists that specialize in treating those with financial trading addictions. So although this article can be useful and informative, it shouldn’t be viewed as a substitute for professional help.
There are many temptations in trading. You can participate on your own, at essentially any time. Plus, there is the prospect of great rewards, especially when using leveraged techniques.
Unfortunately, some people view rewards in such a way that makes it easy for them to train themselves to trade recklessly and compulsively. Trading addicts know that there’s the possibility of fast cars and an independent lifestyle looming in the future, if only they can make the right trades.
Use this information to spot potential issues you may have with trading and begin healing:
1. Like any addiction, there’s a classic downward spiral. When things are moving in a positive direction, the assumption is that nothing negative can happen. You become bolder and less critical of your trades. When things go poorly, there’s a frantic effort to recoup those losses.
* Your brain can quickly make the connection that “making money = feeling good” and “losing money = feeling bad, so let’s do even more of what we were doing to make that money back.” However, in reality, failure is usually not a sign to do more of the same thing!
* Those with a more effective brain structure might view the second part as “losing money = feeling bad, so let’s not do that again.” The second group is more likely to try and adjust their methods.
2. Look for these telltale signs. Like many other diseases, there are certain symptoms that are relatively easy to spot. Even if you’re certain you aren’t showing any of these signs, it would be wise to evaluate yourself from time to time.
* Do you spend too much of your free time trading online? Are you neglecting friends and family? Are you trading at work? Are you actually taking time off from work to trade?
* Are you spending more money than you can afford on trading? Is the amount that you’re spending increasing each month?
* Are you frustrated, aggressive, or trying to distract yourself from other personal issues? Are your personal hygiene and health on the decline?
* Are you having financial issues? Are you borrowing money from one source to pay another?
3. Take action to heal. The most important step is to face the reality of the situation and take action. If you have a genuine addiction, it’s unlikely that you can fix it on your own. There are withdrawal symptoms, just as with any other addiction. Your challenges might even worsen with any significant attempt to self-treat.
* Get the support of your loved ones. Let them help you in your healing journey.
* Seek the assistance of an addiction professional. Someone that specializes in gambling addiction would be a good place to start, since gambling and trading addiction are very closely related. One is betting on a horse, while the other is betting on a stock.
* Be open to the fact that your trading addiction might be the result of some other underlying issue. Be prepared to deal with that challenge as well.
If you have a trading addiction, it’s important to get the assistance you require. The negative impact of your addiction on your financial, emotional, and physical well-being can be dramatic. It’s important to your future to take the steps you need to get better.
Trading is all about making intelligent decisions that will strengthen your financial position in the future.