Signs that You Are Addicted to Trading Forex
With the advent of the online forex brokerage more people are able and willing to trade forex. The problem is that many people are unprepared for the forex market and this leaves them addicted. Many people can link trading forex to gambling in terms of addiction. It is important that you determine whether or not you are addicted to forex and what you can do if you are.
Compulsive Logging Onto Broker Accounts
One of the sure signs that you are addicted, or close to becoming addicted to trading forex, is that you constantly log onto your brokerage account. This is one of the problems with having an online account, the ease of access. Forex addicts can easily get onto the market and place trades at any time of day. If you find yourself doing this then you need to consider the fact that you could be addicted.
The only way that you can limit this addiction sign is to be vigilant. Once you have finished your trades for the day you should log off and close the account. This forces you to have to open the website again to log onto your account. This may give you time and warning which allows you to curb this behaviour.
Day Trading for More than a Day
A lot of traders who are addicted to forex view themselves as day traders. They often state that they do not have a problem because they always close their open position before the day is over, like the strategy says they should. However, these traders also trade for much longer than they should in an average day. Day trading does not meant that you should trade for the entire day. It is only a term used for a style of trading.
To curb this addictive behaviour you need to set a trading schedule and keep to it. This is really the only way that you can stop this from escalating.
Insomnia and Added Stress
One way of knowing that you are addicted to something is the constant craving to complete the action. This can often lead to insomnia because you are up all night on the market. The insomnia actually makes you trade badly because you are not able to function cognitively at the right level to trade correctly. This adds stress to your trading because you are losing on your trades. With this added stress you are going to trade emotionally which could lead to even more losses.
The only way to stop this behaviour is by having a schedule and sticking to it. You also have to ensure that you sleep every night.
Ignoring the Risks when Trading Forex
When someone is addicted to something they generally ignore the risks related to it. When traders are addicted to forex they will ignore the risks of their trades. They will also ignore the cost of entering a trade because they are only focused on the profits or the act of trading. This is very dangerous because it undermines any risk management plans and generally leads to severe losses.
The only way you can stop this from happening is by having a risk management plan and sticking to it. This will take a lot of control because you have to go against your impulses.