The term ‘addiction’ will usually invoke images of individuals using different forms of drugs or alcohol. It may also invoke images of these individuals shivering or sniffing due to withdrawal after being refused the substance for a few days. While these images of addiction are accurate, one must realise there are various forms of addiction and this disorder is not to be associated with alcohol or pharmaceuticals exclusively. In fact, evidence has indicated the existence of something known as ‘trading addiction’ among traders on the forex Australia market.
How do you become a trading addict on the forex Austral market?
For many traders the crossover from casual trader to addicted trader is very simple. All forex trading contains a degree of risk and those traders who become addicts have fallen victim to a psychological risk. The foreign exchange market is a highly exciting one proving traders with an increase in adrenaline levels. This ‘hit’ or ‘high’ is similar to the effect observed in amphetamine users. Once this experience has been felt, the trader with addictive tendencies will desire another surge of adrenaline at this level. Unfortunately, that first feeling of euphoria cannot be repeated but this trader will continue in his/her attempt to recreate it.
A successful trader requires the characteristics of confidence, perseverance and dedication. One may argue that these characteristics breed a risk of addiction but this is not true. While the foreign exchange market does require a committed, hard working individual he/she may not become a trading addict. The descent into this behaviour depends on the trader’s level of emotional control and ability to adhere to their trading plan. Below are some common symptoms of addiction to help you determine whether or not you are heading towards trading addiction.
1. Opening a forex Australia online trading account
In previous years the option of trading forex was provided via local forex brokerages exclusively. You were required to operate through these agencies in order to execute traders on the forex market. However, the online format of the market allows retail traders to trade via the internet. This is more convenient and beneficial for a trader as you can trade from any location worldwide at any time of day. Yet, despite the convenience the psychological disadvantages are just as many. Trading addiction can be seen among traders who are trading online at all hours from Monday to Friday because they can.
2. Day trading on the forex Australia market
Addiction via day trading was first noted in the 1990s when individuals would resign from their jobs in order to trade forex during working hours. These traders would withdraw large amounts of money and manage several different forex accounts believing they were making millions this way. They felt by trading they would earn far more than working an ‘average’ job. Of course, the plan was beneficial for some but the majority incurred great losses.
3. Signs of insomnia and chronic stress
It is essential to conduct analysis of financial trends when trading; however obsessive monitoring of the market activity can lead to cases of chronic stress and insomnia. In order to overcome this difficulty you must develop a schedule indicating times to trade and times to conduct analysis. If this is not done you will experience poor mental health.