DOES IS FEEL LIKE ADDICTION?

Know when you are becoming a slave to the market, know when to stop and when it is time to revisit or rework your strategies, know when to take a break from trading live, JUST KNOW…
You know you really need a break when you constantly feel that urge to be on the market even when you are not really making anything out of it but giving your money away, welcome to trading psychology and it is about time you take a break, stop and take a deep breath. Losers are like addicts, they just can’t stop. A successful trader, on the other hand, acknowledges the fact that he/she is not going to win all the time, he/she knows that it is business. Sometimes there will be times when you are absolutely wrong and you find yourself on the wrong side of the market, it’s OK, it happens, it shouldn’t bother you at all as it is mostly the best time to see how you can improve, remember the market doesn’t know you exist, trying to corner it is just a bad idea and pure waste of time, changing your behavior is what you should do. There are a lot of differences between trader/business person and loser/gambler, but I will mention just 5 most noticeable differences.

      TRADER/BUSINESS PERSON:

• Successful traders treat drawdowns as a signal that something is wrong with their strategy and they need to rework it. Having several losses in a row does not freak them out as they don’t risk much on each trade.
• They know the costs per trade (in terms of dollars), they know how much they spend per trade and have good planning before they enter a  trade, they know exactly when to cut their losses and when to close that bad position and also how much are they going to lose should the market go against them.
• Winnings do not excite them more than the losses do, because losses give them a  room to improve.
• They don’t take losses too personal and they don’t blame the Forex Broker or trading platform for any losses, they are in total control of their behavior.
• They don’t trade everything and every day, they don’t just trade for the sake of trading and they don’t stay glued to their computer for the whole day as if life stops just because they trade.

LOSERS/GAMBLERS:

• They respond very badly to drawdowns, they never see it as an opportunity to rework their strategy. Oops!! well, they don’t have strategy mostly, no wonder they don’t get it and they never really know why they are loosing. Instead of finding out and re-working their strategy, they get ‘killed’ by one of the 2 bullets: EMOTIONS and IGNORANCE, which increases the urge to trade even more.
• They don’t know the cost, they don’t know how much they spend per trade, they don’t plan, they don’t know when to cut the losses because they normally do not even  use the stop loss, they never think the market could be against them and they need to protect themselves, they find it hard to stop, it’s like addiction to them, they feel addicted to the ‘thrill’ and they fear not being part of it.
• they are extremely excited by gains and even more depressed by losses because they don’t see it as an opportunity to improve. When the market goes against them, instead of cutting their losses, they try so hard to trade their way out of the”hole”by trading more, if that fails, they hide their losses by trading other people’s money. Losing is embarrassing for them, so they feel they have to hide it.
• They take losses too personal and for that reason they blame everyone else but themselves. They blame the Forex Broker, they even change brokers, they blame the platform thinking if they can find a better platform they will perform better. They overlook their own behavior
•  They trade everything and anything that they see on the market watch. They have a poor mentality of thinking making hundreds and hundreds of trades make one successful. It is not in the quantity but it is in the quality of trades. They stay glued to their laptops the whole day, they think watching the screen the whole day and doing nothing else will make them millions.

#TIP1:

New tips, new system, new trading methods, new platform, a new broker, CANNOT help you if you can’t handle yourself, i’m saying this again, the market is not your mother, it is full of man and woman who are out there to make it.

#Tip2:

Confidence is a good personality trait that we all need to possess, as my personal philosophy, I tag it along wherever I go and I never go anywhere without it, but too much of anything can be bad sometimes. Now, this is to the overly confident trader, be careful not to let that be the bullet no 3 to ‘kill’ you. There is a thin line between being confident and being big headed. If you are trading already, happy trading and keep it low risk always. If you are not yet trading and you are interested in understanding more about this subject, feel free to drop me an email:Admin@learnfxtrading.net

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