MY FUR-NEPHEW IS a sausage dog name Wilfred. His hobby? Hunting down can toads.
Once he catches one, he rolls it on its side. Then he gently squashes it with his paw and delightedly licks the oozing yellow poison it secretes from its slimy glands.
Wilfred then gets an immediate hallucinogenic high, and wins an emergency trip to the vet to have his stomach pumped. Time and time again.
Bizarre behaviour for a sausage dog. Yet, will he learn from his multiple stomach pumps?
Apparently, the answer is ‘no’. Thus is the power of addiction.
So… how do you know whether you’re addicted to the market action, or whether you’re a cool, collected, logical trader?
Here’s how to tell… ask yourself these questions and answer ‘yes’ or ‘no’.
- Is it more important for you to trade, rather than be profitable?
- Do you live for the high of the win, rather than aim for emotional detachment?
- Do you go on gut feel, rather than follow a solid written trading plan?
- Do you refuse to accept the help of an experienced mentor, because you think you know it all?
- Do you look at your own positions constantly, rather than allow yourself to get some needed downtime?
Now, it’s time to score. Let’s see how you went.
Scoring: Count the number of ‘yes’ answers.
0 – 1. You are in control, not addicted to the market action. You’re doing what it takes to trade successfully. If you’re not yet profitable, it’s only a matter of time.
2 – 3. You have highlighted that you do have some risk of addiction. Beware, because the equivalent of a trading stomach pump at the vet will be your fate if you don’t address these issues.
4 – 5. You are in full-blown, cane toad addiction to the markets. Stop what you’re doing immediately and check yourself into trading rehab with a mentor today!