Trading Psychology : Addicted to trading ?

Trading is often about how to take the appropriate risk without exposing yourself to very human flaws.
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northbound
Posts: 399
Joined: Mon Mar 20, 2017 11:22 pm

Mon Jan 01, 2018 2:40 pm

Kafkaesque wrote:
Mon Jan 01, 2018 2:09 pm
Anyone claiming in any way, shape or form, that addiction is good, needs - to be blunt - a flipping reality check. And have in all likelyhood never come close experiencing addiction on their own mind or someone close to them.
You made me think about what I wrote and you’re right. Most probably when I talk about addiction and obsession, I mean “really big passion” and “commitment”.

Certainly something that you can control, not something that controls you completely, as in the case (for example) of compulsive gamblers that blow their paychecks on fobts, etc.

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Black Ice
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Joined: Thu Nov 06, 2014 12:35 pm

Mon Jan 01, 2018 4:01 pm

I'll give you guys two examples of 'obsession with winning' in the world of racing: Tony McCoy & Richard Dunwoody. Both have/had women who were real saints in putting up with them.
Tony was seriously upset if he had a day at the office without a winner...& was often in a foul mood coming home..& would analyse/analyse analyse endlessly what he should/could have done better. Dunwoody the same. McCoy has come out of it ok & balanced..Dunwoody not so,,it cost him his marriage...and is why he still in his 50's is taking on crazy trials like walking to N Pole etc. I gather he was very difficult to live with. Then again...that obsession with winning is what made them such great jockeys. So is obsession bad or not? I dunno!

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Black Ice
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Mon Jan 01, 2018 4:05 pm

I remember one Chestenham Festival McCoy was having a rotten week and was going around like a wet week...that even the racing press...usually so jockey friendly ..were starting to criticise and telling him to get a life & SMILE!

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ruthlessimon
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Thu Jan 04, 2018 5:07 pm

I must confess, I do sometimes get a somewhat sadistic rush when witnessing the panic & desperation during explosive movements (especially if I'm involved just slightly prior - & in the right direction of course!!)

utubecomment21
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Joined: Tue Apr 25, 2017 11:34 pm

Sun Jan 07, 2018 11:40 pm

Funny I just saw this YouTube video today
https://www.youtube.com/watch?v=i0aBVx-oLNA - How Dangerous Can Making Money Be? Day Traders face Addiction

Its something that has been spoken about by a few successful traders, addiction, obsession. I have seen a few 12 step programs and have been in contact with many of their participants, and addiction never ends well! If you can't step away, relax, do something else without thinking about trading, then there's a potential issue. The money factor has nothing to do with it! As Anton Kreil said (paraphrasing) there are a million ways to make a million" trading is one of those ways. https://www.youtube.com/watch?v=4a51wQAOGR4 - 10 Secrets to Achieve Financial Success

The few that make real money rarely talk about it as in addiction, it seems to be those who are loosing that the label of 'Addiction' might come into play. If one isn't successful and is addicted, then that's an obvious problem ... you know the type ... the type who will trade/gamble the food money or rent. I don't believe in one should keep on trying. For the most part, and statistics show that most will loose in trading. Why would one want to continue ... to loose? they are those who simply don;t know that trading isn't for them ... as it isn't for most people!

I'm afraid trading is like anything else in life, the so-called successful will shout it from the rooftops, whilst making money from ever other revenue stream other than the stream they're claiming to be promoting, pushing the narrative of success, because they've worked out that its the 'Narrative' that makes money, not the money making solution. Another handful will just about make the grade, but the vast majority won't make enough to cover the price of a McDonalds happy meal, but continue to throw their money down the drain because they want to believe the success narrative.

RicHep365
Posts: 101
Joined: Thu Nov 23, 2017 9:42 am

Tue Jan 09, 2018 9:05 pm

utubecomment21 wrote:
Sun Jan 07, 2018 11:40 pm
Funny I just saw this YouTube video today
https://www.youtube.com/watch?v=i0aBVx-oLNA - How Dangerous Can Making Money Be? Day Traders face Addiction

Its something that has been spoken about by a few successful traders, addiction, obsession. I have seen a few 12 step programs and have been in contact with many of their participants, and addiction never ends well! If you can't step away, relax, do something else without thinking about trading, then there's a potential issue. The money factor has nothing to do with it! As Anton Kreil said (paraphrasing) there are a million ways to make a million" trading is one of those ways. https://www.youtube.com/watch?v=4a51wQAOGR4 - 10 Secrets to Achieve Financial Success

The few that make real money rarely talk about it as in addiction, it seems to be those who are loosing that the label of 'Addiction' might come into play. If one isn't successful and is addicted, then that's an obvious problem ... you know the type ... the type who will trade/gamble the food money or rent. I don't believe in one should keep on trying. For the most part, and statistics show that most will loose in trading. Why would one want to continue ... to loose? they are those who simply don;t know that trading isn't for them ... as it isn't for most people!

I'm afraid trading is like anything else in life, the so-called successful will shout it from the rooftops, whilst making money from ever other revenue stream other than the stream they're claiming to be promoting, pushing the narrative of success, because they've worked out that its the 'Narrative' that makes money, not the money making solution. Another handful will just about make the grade, but the vast majority won't make enough to cover the price of a McDonalds happy meal, but continue to throw their money down the drain because they want to believe the success narrative.
I make a decent amount of money from gambling, but because I know I have an edge I would never refer to it as gambling. However I'm 100% addicted to the game, I spend 70% of my waking life thinking about it. Analysing stats, markets, thinking of new ideas, coding them. If I didn't have a family I'm sure it would be close to 100% of my waking life. Is this a problem? not if it's not hurting anybody IMO.

stueytrader
Posts: 289
Joined: Tue Dec 15, 2015 6:47 pm

Sun Feb 04, 2018 10:53 am

Very interesting topic.

A personal take on it would be that you are in 'addiction' when you find yourself unable to make any changes to what you do - even when you want to change things.

I've personally altered a lot of my strategies (e.g. staking, selection approaches) over recent times, and feel that shows me I'm not in the 'addicted' state rather the passionate state, as others mention.

I do believe if you are able to change key aspects, such as reducing stakes after a loss as a great example of control, then you can say you are not acting out of addiction. If you are acting on auto, increasing stakes after losing for example, then you have problems most likely.

I aim to never stop controlling all my trading activity, with the power of change. That way, I'm never addicted to a single activity or approach.

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