It can be sometimes difficult to distinguish between being passionate about something and being addicted to it. The line is quite thin. Both make you spend long hours on the subject. In the case of trading, you will be sitting in front of the computer reading, analysing and opening transactions.
Whether you are passionate about trading or addicted to it, you can still do great. You can open one successful trade after another and be happy about it. However, if you are a passionate trader, you have better chances to sustain your success.
The problem with addicted traders, or with any other addiction for the matter, is that sooner or later it will have negative consequences. Addicts experience ups and downs all the time. They become obsessive and, instead of enjoyment, fear of failure begins to dominate their actions. Addiction influences other parts of their lives in a negative way. They neglect other duties.
What can you do not to become a victim of trading addiction? You need to take care of your mindset. You cannot allow that external rewards such as money, fame or the fear of losing control your decisions. You must develop your trading skills and enjoy the process of becoming a better trader.
Below you will find a few tips that may help you in this task.
1. Focus on the process
The trading process itself is even more important than the results. Of course, you want to earn profits. Nevertheless, you will not make any if you are obsessed with this thought. You should begin with a good trading plan.
Building your own trading plan will help you to be consistent and disciplined. Reward yourself every time you make a move in accordance with the trading plan. Do not dwell on losses. Do not worry the profits are small for now. Focus on the process.
2. Have patience
Trading is the art of being patient. You are spending long hours analysing the markets, waiting for a good occasion to open a transaction, then you wait to see how the situation will evolve. It is constant waiting.
Have patience. Rushing the things will not bring you any good. You will only risk taking wrong decisions or falling into scammers’ traps.
It is crucial that you work on your ability to wait patiently. Also here a good trading plan can be of great help.
3. Take a break
There is something that is called a 24-hour rule. It recommends taking a break for 24 hours to reflect on winning or losing streaks.
It is quite natural that when you experience a winning streak you may feel the excitement and you open the next transactions in emotions. A losing streak can affect you in the same way. Only the emotions you feel are different. But they are strong enough to make you open the trades that you normally would not.
This is why when you notice the first signs that you act in revenge or agitation, you should take a break. Use the rule of 24 hours to gain a better perspective on your winning or losing streak.
Trading requires your commitment. You have to invest not only money but a lot of your time as well. This can lead to discovering your true passion. On the other hand, it can turn you into a trading addict.
Be aware of the fine line between passion and addiction. Follow the recommendations I gave you in today’s article. Concentrate on the process itself, do not be obsessed with the high payouts. Be patient and remember to take a break whenever emotions start to overwhelm you.
Relish the journey as you will improve yourself as a trader. Prepare your trading plan and follow it. Do not try to rush things and you will see the results in no time.
Many brokers offer practice accounts. They are often free of charge. Use them as a training field. Work on your trading skills and keeping emotions in check. With time, you will feel confident enough to move into a live account and start making real money.