Trading Addiction Symptoms Test and a Trading Habits Checkup

Trading can sometimes be very painful, but at its core it is a lot of fun. That is quite similar to the reasons people become addicted to things. That's because trading is, at its core, speculating on unknown future price movements.

Of course, trading itself is not gambling. But because it is also a kind of probability game, it has a certain gambling-like quality. What symptoms show up when you become addicted to trading? Take a look back at your habits and try to become a better trader.

Trading Addiction Symptoms Test

The following are common signs of being addicted to trading. If 4 or more of these apply to you, you have a serious trading addiction, and if 2 or more apply, you are showing early symptoms of addiction.

1. You feel stressed or irritated when friends or family tell you to cut back on trading
2. You enter and exit positions dozens of times a day, over and over
3. You get angry when the market moves differently from what you intended
4. You keep increasing your leverage and capital, thinking you just need to win this one time
5. You take out excessive loans to trade
6. Instead of thinking about why you failed, you tell yourself you were just unlucky
7. You don't manage risk, and you keep trading even while you keep losing money
8. You think you should stop, but you keep trading against your own will

Trading Habits Checkup: How to Become a Good Trader and Make Profits

"The most important rule of trading is to play good defense, not offense. Every day, I assume that every position I hold is wrong. I know where I will stop my risk. That way, I can gauge the maximum loss that could occur. When a position goes against my intentions, I get ready to exit." - Paul Tudor Jones

The great thing about the market is that anyone can take part in it. The crypto market in particular, including Bitcoin, runs 24 hours a day, 365 days a year. Asset prices in the market can go up or down, completely regardless of what we want. That's why we absolutely need to prepare a 'risk' management strategy. That is the first step to becoming a successful trader who keeps their assets safe while making a profit.

Everyone probably trades for the same reason: to make money. But most beginner traders tend to approach trading as if it were far too easy. They also trade far too aggressively and do no risk management at all. If you've lost a lot of money and still thought you were just unlucky, you are still a beginner trader.

As I also wrote in my post How to Be Good at Day Trading, trading is not just a matter of entry points. It is a fairly complex and difficult activity that requires you to prepare an understanding of the asset, your initial capital allocation and profit targets, your risk tolerance, and your response strategy. This is especially true for day trading and scalping, where capital turns over quickly.

If you see symptoms in the trading addiction test above, it's best to stop trading for a while, regardless of your skill level. In the end, excessive obsession leads to greed, and you could end up losing a lot of money. Above all, this is an attitude you must not have if you want to succeed at trading.

So how can you become a skilled trader who makes good money? There are many ways, but the most important thing is to have self-control. Don't get overly greedy, and only trade with money you can afford to lose. Also, humbly accept that not just anyone can become a legendary investor. Accept that you can always be wrong, and trade conservatively with the mindset that protecting your money is the first step to making money.

"Always question yourself and your abilities. The moment you think you are great, you can die." - Paul Tudor Jones