When I started trading forex back in 2002, like most novice, home based forex traders I was actually gambling. I have never gambled in my life nor had any interest in doing so BUT I had soon developed all the bad habits of someone with a gambling habit.
If you would like to know how I finally broke free from this debilitating habit and turned the corner to become a consistently profitable forex trader then download a free copy of my ebook “How to Trade Forex.”
Simply enter your name and email in the blue box to the right and you will be able to download it immediately as well as have access to the forex video training course.
Like most novice traders I really didn’t know what I was doing! I hopped from one strategy to another and often spent 10/12 hours a day “trading” and blowing up accounts. Long periods of boredom followed by adrenalin fuelled moves led to repeated stupid mistakes, over trading, blown accounts & every other mistake a rookie can make.
Now I do my analysis on a Sunday, wherever possible place my trades and walk away – here is this weeks analysis & plan that earned my followers and I 100’s of pips and $1000’s: Marcs Winning Forex Analysis
I also trade gaps at the market open which is a couple of hours tops, so altogether now my analysis is done I shouldn’t have to spend more than a few hours at my screens this week. -if you are new this is the outline of the simple strategy I use: Marcs Gap Trading Strategy If you would like to discover the complete simple method then enrol in my low cost forex mentor program
My long term goal has always been to trade from these longer time frames. In the last few months it has been very successful.
Forex Trader or Gambler?
You may not have a major problem but see if any of these is or has ever been an issue.
Traits of a gambler: I did most of this in my early days so speak from experience 🙁
- Failing to follow strict money management rules
- Having no fixed strategy
- Not keeping a trading journal
- Over trading
- over leveraging
- trying to “win back” losses
- “throwing everything on the black”- I did this a few times in my early days. I would lose say 75% of my account and then make 1 big trade (it was a BET)! to go for sh*t or bust. I always went bust
- Only tell friends and relatives about the winning weeks, never the losers
- slipping extra money into the trading account
- Moving stops in the “hope” that a trade would come back to me – “Hope” is NOT a strategy!
- Being matter of fact about large losses: “But I haven’t lost that much,” or, “It isn’t as if I gamble/trade every day”
- Gambling/trading for a longer time period than planned
- Loss of sleep due to gambling late into the night or inability to shut off thoughts of Trading/ gambling – Used to dream about trades, how sad was that!
- Exhausting supply of money; using money for gambling rather than for paying bills
- Feeling depressed or suicidal because of gambling losses
- Feeling remorseful after gambling
I was speaking with Fotis Papatheofanous last week, our resident ex hedge fund trader, and we agreed that one of the biggest challenges facing novice traders is the desire to “trade.”
As Omar says, if you need the “buzz,” take up poker. Personally I am well past that stage, I only trade to make money. No buzz, no adrenalin rush, no cheering when I win nor tears when I lose. It’s a job. It’s a VERY good job in that if you can do it properly you can earn a serious amount of money working a handful of hours a week. First goal? is stop gambling, start trading like a pro.
Let me know below if you have ever had any similar issues and how you overcame them. If you are still struggling then my best advice is STOP. Start again. Thoroughly learn and demo trade your chosen strategy using correct money management – this is key. You will never succeed as a forex trader if you are gambling. Those for whom gambling has become a serious problem should contact Gamblers Anonymous