If you find yourself unable to manage your trade and the psychological, financial, and social results are rising, that’s not a passion for the trade. It’s sort of an addiction. How does one treat addictive trading? The first step is to identify it, but the second and tougher step is to recognize that you need help. It’s pride that tells us that we can do it on our own by will power, but in the first place, addictions wouldn’t happen if will power were enough to avoid results. To convince yourself that you can handle your own addiction is a form of denial in itself.
If you can’t sleep at night and roll out of bed late at night. You could just be a trading addict to checking the trade you went through the day before. Many Forex traders do this and it is basically a result of either over-risking or over-trading. A good thumb rule for deciding your risk patience is whether or not the amount you risked keeps you up in the night. If you find your thoughts overshadowed by the current trade you ‘re in, and what’s going on with it, it’s probably time to lower your risk or just stop trading for a little while.
If you look back at some of the famous scientists, philosophers, doctors, artists, and traders they were all totally immersed in what they were doing. The thing is, they knew when to stop. If you just like the trade and enjoy it, it doesn’t mean you ‘re addicted to it. But when you still trade with several other things you can do instead. The trick is knowing when to pause. Otherwise, you’ll end up in a loop that’s so familiar to all kinds of addicts overdo and regret.
It is very helpful to have a teacher, mentor, who also trades, as a preventive step, and is someone you can trust to be honest with you if they start seeing troubling signs emerging. Before it grows they are usually the first to notice the signs of a potential problem. Friends and family members to help keep you grounded. They will be able to have an outsider’s perspective on your actions. If you’re feeling your self-control slipping, you’ll need to stop trading before you know you’re more in control.