Trading addiction. A serious problem

October 7, 2024 Trading notes

By definition, the unexpected is a major source of anxiety.
Knowing how to manage the risk of the unexpected means controlling the ability to act.

Veronica Baker


Trading addiction. A serious problem

Trading addiction
Trading for many can be fun…

For many, trading can be fun.

A serious problem.
Because it is addictive.

Life outside the trading platform fades away.
Reality mixes with virtual desires.

Like making money every day, the desire to buy (or sell) on lows (or highs), to make 100% correct trades.
A very dangerous alchemy that disorients the mind.

Actions are no longer dictated by logic, but by illogical emotions.
Rejecting all signals and especially any advice from outside.

And only when the trader stops “playing

does he realize how irrational his behavior towards the market is.

Back to rationality.
But only briefly.

The irresistible temptation soon regains the upper hand.
A state of even greater emotional tension is established.

A situation that favors the onset of anxiety stress and, consequently, trading addiction.

Anxiety is a state characterized by feelings of fear and occurs when faced with the prospect of unknown or undesirable events.
For example, the fear of placing an order at the wrong level, an adverse market movement, unexpected news.

The unexpected is by definition a major source of anxiety.
Knowing how to manage the risk of the unexpected means controlling the ability to act.

Otherwise, clarity and objectivity are lost.
Anxiety increases.

And heavy losses are just around the corner.

At this point, a longer or shorter period of detoxification is necessary.

Because trading has to be emotionally rewarding.
Before being profitable.