Friday, May 1, 2015

Destructive Patterns in Trading

Before we get into the topic of destructive trading, allow me to explain how
psychologists assess whether or not a person has a problem with alcohol consumption.
Here are ten questions that a professional might ask in order to assess any kind of
substance use disorder, including alcohol abuse:
1) Have you found that your drinking is bringing unwanted, negative consequences?
2) Have you recently felt guilty over the way you have been drinking?
3) Do you find you need to drink more just to get the good feeling?
4) Do you find that your personality changes when you drink excessively?
5) Do you find it difficult to take a break from drinking, even when part of you
knows that this would be best for you?
6) Do you find yourself drinking to feel good about yourself?
7) Do you sometimes feel that you cannot control how much you drink?
8) Do you find yourself getting angry when someone close to you questions your
9) Do you find yourself vowing to limit your drinking, only to slip back into
10) Do you find it difficult to not drink given the opportunity, even when the occasion
is not really appropriate?
Now for the topic of destructive trading: Please answer the above questions, but
substitute the word “trading” for “drinking”, and substitute the word “trade” for
Fear and greed are potent influences on trading, but the greatest trading problems,
I find, are addictive in nature. Successful traders really want to trade; they have a passion
for trading. Addictive traders need to trade; they have a passion for action and
An addictive trader will not manage his risk. That is because risk is part of the
An addictive trader will not stop trading, even when losing money. That is
because action, not profit, is the goal.
An addictive trader will cycle between periods of guilt and responsibility and
periods of excess and irresponsibility.
Good traders trade actively. Addictive traders overtrade.
If you see yourself in this profile, do the right thing, before your patterns ruin
your career and harm those who depend on you. Get help. You can change. Your
trading and your happiness lie in the balance.

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