Trading on the forex market can be both exciting and stimulating, somewhat like a Las Vegas casino; and just like a Las Vegas casino it can entrap you to the point of addiction. As with any form of addiction, forex trading addiction can cause a severe impairment in your daily functioning causing a loss of job, relationships and financial resources.
Why is forex trading tempting?
One of the most enticing features of the forex market is the high payout. Another is the online features which allow traders to trade from any location at any time of day or night. Also, one can engage in the market without having to consult a higher authority regardless of its volatility. The trading strategy you use will also determine the amount of trades you make and whether you trade short or long term. In theory you could have a great deal of profitable trades and become financially independent in a short space of time. Unfortunately, this is only a theory and many traders do not achieve this dream. In fact, statistics indicate only 10% of new traders see consistent profits with the other 90% making successive losses. This is due to an inadequate knowledge of the risks, leverage and technical analysis required for effective forex trading.
How does addiction begin?
Despite the negative aspects of the forex trading, the environment is still one which many wish to enter for various reasons – one being the potential profitable trades. The forex market is one of the most lucrative trading markets in the world and who wouldn’t want some of that action. Of course, once a trader begins to make more profits than losses there is the potentiality of forex trading addiction to occur. The trader may feel they are sure of what they are doing and may bet higher amounts in order to receive higher payouts. Some may experience initial successes, but these trades can soon turn to damaging losses. In order to wing back these losses and replete one’s trading account, further high amount trades must be made – and so the downward spiral will begin.
What are the signs?
Fortunately, many cases of forex trading addiction can be identified through obvious tell-tale signs. These include spending too much of your leisure time on the trading market, thus neglecting any social engagements or family relationships. Furthermore, if you begin to trade during your lunch breaks at work or find yourself thinking about forex trading during your working hours, this may be a sign of trading addiction. Feelings of general anxiety and frustration when one is not trading or discussing trading is another symptom of trading addiction, and in worst case scenarios a neglect of personal hygiene and physical health may be experienced
Is there treatment?
If you begin showing signs of trading addiction or if your family notices these symptoms, it is best you seek out their support. Allow them to help you place things into a realistic perspective. Furthermore, try taking a break from the forex market to recuperate and readjust your trading goals.
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