Thanks to cheap trading commissions and the possibility for immediate realized gains, trading stocks can be a very addicting process. At the same time, when your money is on the line, things can always get pretty stressful. While it might not be considered a bad quality if you are consistently making money, many researchers have compared stock trading addiction to your ordinary gambling addiction.
Below is a checklist to see if you are addicted to trading stocks
- You know every stock symbol on the top of your head.
- You’re not satisfied until you can make a profitable trade to make up for bad trades.
- You enjoy the challenge of trading over actually making money.
- You are constantly flustered by the ups and downs of a stock in a given day.
- You start to make crazy excuses and blame others for your bad trades.
- You frequent message boards and social networks to try and pump up your stock.
- You are glued to the Twitter stream to see what traders are actively buying and selling.
- First thing you do when you get up and last thing before you go to sleep is check your stocks.
- You find and follow a new stock everyday.
- You start buying based solely on what somebody says.
- You bet large portions of your portfolio on a few stocks.
- You check your account balance every 5 minutes of market hours.
- You scoff at the trading strategies of other people.
- You never really actually get better at trading.
How to cure trading addiction
I could add that you trade recklessly, will trading against your morals, and so on, but I think you get the idea by now. In the unfortunate circumstance that you indeed are addicted to stock trading, then are a some steps you can take to cure the addiction.
Take a break. Step away from the market for a couple days, weeks, or months, and just let your mind rest. During this time you should try to avoid specific market news as much as possible.
Keep a journal. Often people who have some sort of addiction jump straight into what they are doing. By keeping track of your trades, thoughts, and ideas, you will be able to clearly see what you are doing and when you should be put in check.
Consolidate your research. There is no need to know every single piece of information and news available for your stock. Create a set strategy, break it down as much as possible, and keep it. The simpler your strategy, the easier it will be to abide by.
Call it a day on bad trades. The next time you lose money in a trade, call it day. Go do something else, and live to trade another day. Eventually you will work your way into avoiding trying to make up for bad trades.