hey… I hope you’re still there. Trading is not gambling. And I think you already go deeper in to. I wrote this post few moments ago, and will paste it here. hope this helps.
[B]20 questions to measure your trading habit[/B]
In trading, somehow, we started with winning money. We became excited and betting more money. Then we started to lose. This gave you anger to revenge and, put another lot of money, bigger this time. And those anger combined with rush feeling, loosening your risk management. You want to play big, quick, and thats that. Expectedly, you keep losing money.
This viscous circle forms what we call with compulsive trading, aka gambling addict. Every single trader out there is just an edge from becoming a compulsive one. We have been there and done that. But we got up and not getting ****ed up. We keep our butt and gut to become the one who consistently profiting from the market.
We don’t want you to be at the worse side. Thus, these 20 questions should be your meter, to measure your trading habit. Taken from “The Compulsive Trader” by Van K Tharp, PhD, a trading psychology specialist, here we go.
- Do you lose time from work in order to trade?
- Does trading make your home life unhappy?
- Do your trades negatively affect your reputation?
- Have you ever felt remorse after trading?
- Do you trade to pay debts or solve other financial difficulties?
- Does “trading in the market” cause you to feel less ambitious or less efficient?
- After losing do you feel you must return as soon as possible to win back your losses?
- After winning do you feel a strong urge to return to the market to win more?
- Do you often trade to the point of losing your last dollar?
- Do you ever borrow to finance your trading activity?
- Have you ever sold real or personal property to finance your trading activity?
- Are you reluctant to use trading money for normal expenditures?
- Does trading make you forget about the welfare of your family?
- Do you ever trade longer than you’d planned?
- Do you ever stay active in the market to escape worry or trouble?
- Have you ever committed or considered an illegal act to finance your trading activity?
- Does trading cause you to have difficulty sleeping?
- Do arguments, frustrations or disappointments give you an urge to trade?
- Do you ever celebrate good fortune by trading?
- Have you considered self-destruction because of market losses?
If you answered yes, for point 7 and 8, then beware. You have to start wash yourself and initiate healthy discussion and refresh. Based on our experience, these started from two main factors. First, unprepared knowledge. And second, because you start trading by yourself without any direct guidance and surveillance.
The second one is arguably the most dangerous one. We just remember on addiction cases, where any addiction, somehow caused by the discontinuation from inter relations. Retail traders tend to start it by themselves, alone. And when they started to lose, they came even deeper on a loneliness. And thats dangerous. You must seek help. If you want to still do trading, start learning with a healthy group trading discussion who are willing to guide your trading journey.