*Trading Addiction* ๐งต
Rewritten an old thread.
I'll start by outlining some feelings that I hope will make you feel as though I can see you and your behaviours through the screen, then I'll go into some tips I can give for trying to step back.
It is addiction and it's real.
Rewritten an old thread.
I'll start by outlining some feelings that I hope will make you feel as though I can see you and your behaviours through the screen, then I'll go into some tips I can give for trying to step back.
It is addiction and it's real.
I want to start by saying, I've experienced all of these things. I'm not speaking from a high and mighty position, rather from experience and someone who struggled with this side of things immensely.
I touched on the topic on stream and it resonated with a lot of people.
I touched on the topic on stream and it resonated with a lot of people.
Behaviours - I hope this section hits home in terms of shared experience and the way many of us are alike in (un)healthy habits.
1. Too much time spent staring at charts. Sit, do nothing, can't even be bothered to get up and make a coffee, just watching, aimlessly.
1. Too much time spent staring at charts. Sit, do nothing, can't even be bothered to get up and make a coffee, just watching, aimlessly.
2. Inability to leave positions alone, stare at PnL going up and down, cross-reference with the chart, tell yourself a story about each "bad looking" red candle (or green candle) - find yourself going lower and lower on timeframes while overmanaging positions.
3. Unable to do anything else without having to check charts
Eating food -> charts
Out with friends -> charts
Doing chores -> charts
Watching TV -> charts
Playing games -> charts
You probably often find it difficult to complete 1 task without looking at a chart midway through.
Eating food -> charts
Out with friends -> charts
Doing chores -> charts
Watching TV -> charts
Playing games -> charts
You probably often find it difficult to complete 1 task without looking at a chart midway through.
4. You feel as though you're running out of time to "make it" - you justify (directly or indirectly) your behaviour by the fact that the more time you put in now the more likelihood you have to hit it big.
5. You browse anything and everything alt related. There's no structure, you're just trying to look at EVERYTHING trying to find entries or reasons to be a buyer or seller.
Twitter probably controls what you look at.
Twitter probably controls what you look at.
6. You trade based on your PnL or a "bad" looking candle vs any form of system. As a result you miss out on most moves and have a hard time staying in a position until a real breakout happens.
7. You open and close multiple positions a day and multiple positions on the same coin and it is probably one of the primary reasons your account gets drained - market fees slowly eat you alive.
8. You started off as an investor/hodler and found yourself more and more involved in trading, you're not sure of the exact point the transition happened but you're now actively managing positions and trading the markets.
9. You also know that if you'd just stayed as an investor you'd be in a far better financial position.
10. You find it hard to shut down the PC/laptop at night because you want to keep watching the charts.
When you do shut it down, the first thing you do when you get into bed is load up the charts on your phone.
It's also the first thing you do in the morning.
When you do shut it down, the first thing you do when you get into bed is load up the charts on your phone.
It's also the first thing you do in the morning.
OK enough of that.
Some of these behaviours are healthy and can absolutely put you into a position of being a successful trader. But only if you manage them and are productive in your use of time.
Some are outright unhelpful/damaging.
Some of these behaviours are healthy and can absolutely put you into a position of being a successful trader. But only if you manage them and are productive in your use of time.
Some are outright unhelpful/damaging.
How to change.
Well this part depends on you, how much you want to, how much is working, not working, relationships, etc.
But:
1. Markets provide opportunity all the time, even in recent months you've seen NFTs pop off, alts pop off, NFT Gaming pop off.
Opportunity nonstop.
Well this part depends on you, how much you want to, how much is working, not working, relationships, etc.
But:
1. Markets provide opportunity all the time, even in recent months you've seen NFTs pop off, alts pop off, NFT Gaming pop off.
Opportunity nonstop.
So you're not in a position where you have to make it right now, you have to survive and grow.
Markets provide opportunity in different areas all the time, this will always continue to be the case.
If you let the addiction of gambling on positions dominate, you'll go broke.
Markets provide opportunity in different areas all the time, this will always continue to be the case.
If you let the addiction of gambling on positions dominate, you'll go broke.
2. Use time productively.
You know sitting there doing nothing but staring is largely unhelpful. Spend time actually being productive and working on something. System creation, identifying PA patterns, watching educational content, sharing ideas, journaling.
You know sitting there doing nothing but staring is largely unhelpful. Spend time actually being productive and working on something. System creation, identifying PA patterns, watching educational content, sharing ideas, journaling.
Treat your day like work, spend time being focused and productive, then take time off. Repeat the process. Days and weeks will pass you by and you'll have gained/learnt nothing otherwise.
3. Appreciate that there is always a trade to take. What I mean by this is that you don't need to be staring 24/7 for opportunity.
As a very simple example, some people wait for daily closes, weekly closes, to enter positions. You need to do it on the 5m.
Leads to next point.
As a very simple example, some people wait for daily closes, weekly closes, to enter positions. You need to do it on the 5m.
Leads to next point.
4. Very often it's your leverage/risk that's the issue. You want to make it big, quickly. You bump up the lev/risk all the time in the hopes you catch the big one. This means you HAVE to enter on these low timeframes to catch your opportunity, you can't manage any drawdown.
Reduce your risk, reduce your leverage, allow yourself breathing room in positions. Many of you know that if you'd not been stopped, you'd have hit a homerun. The issue is your risk, it's too high, you're too horny.
So by reducing risk, you'll actually see more profit. Because now you don't have consistent stopouts. You have breathing room to allow the position to chop (but not you) and then realise the gains when we finally breakout.
5. Swap to HTFs. Change up your approach completely. Adopt the previous approaches and stop being a degenerate on lower timeframes when it's unhealthy to your relationships, hobbies, mental health and generally your life.
6. Take a break. Go cold turkey. Show yourself and finally realise that no matter how long you take a break for, there is an opportunity when you return. Whatever the market, whatever the coin, there's opportunity.
Actually seeing this process happen can be enlightening.
Actually seeing this process happen can be enlightening.
This game tires you out. Mentally ruins you. Causes you real world issues when you're blowing money. Addiction can be a strong root cause for a lot of your early trading mistakes. You have to get it under control.
It sucks to hear addiction and understand that you suffer.
It sucks to hear addiction and understand that you suffer.
But you have to acknowledge and change. If it's hurting you, mentally, financially, then it's time to do something about it.
I hope this thread has been helpful in some form to you.
I hope this thread has been helpful in some form to you.
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