Trading is the best way to earn some profits. It allows you to use your skills and make money. However, some people make it as an addiction and try to win 100% in their trades. Not only is this an impossible approach, but also it is bad for your mental health. They become so caught up in making trades that they forget their limitations. Mostly, these people end up losing a great amount of money. Whether you're an Islamic trader or not, the below lines will make your trading life smarter.
This is why it’s important to keep it as your passion. There are some ways to know whether you have an addiction or passion for forex trading, which you can learn from this article.
How Do You Know that You Have Passion for Trading and Not Craving for Wining?
It may not be hard for you to know your intentions, but some traders struggle to understand their feelings. Of course, no one has complete self-awareness. Most people fool their selves easily as they only care about winning.
So, how will you know that you are trading intelligently and making the right choice at the right time? And how do you know that you are overtrading just to win the game?
If you are initiating trades and making a decision by considering positions and thinking about the number of trades and how much time you are trading, you have built an addiction to trading. Moreover, if you find yourself saying that you need to trade at least every X days to succeed or that you have not made a trade for a long time and now it's time for trading, you are on the wrong path. This is called overtrading.
If you have a passion, you will focus on the following aspects.
It is possible that you get profit from the system that wins 67% of the time. You will also do great in the system that wins 80% of the time. But try to be realistic. Of course, you are not going to win 100% of the time. A system where you take around 3 to 4 trades per month can give you higher profits if your winning percentages are high.
Optimal Trade Setups
You should initiate a trade if you get you a proper environment that fits exactly your preferences. It must tell you that this is the best opportunity, instead of telling you it's time to make the trade because you have not made one for a couple of weeks. Try to avoid this approach and look for the optimal statistics and circumstances to initiate trade.
How to Make Trading your Passion Rather an Addiction?
There are some limits to everything in this world, which you need to keep in mind so that it doesn't cause you any problem. The same goes for trading; you need to take it as a passion rather than an addiction.
The following are some ways to make trading an interesting activity for you instead of turning it into a compulsion or addiction.
Think About Results
This is an essential thing for trading. As you know that trading is probabilistic, you should be ready for any result.
The trader should try to focus only on the process. In this case, you can start by building a proper plan. And feel the joy of the small wins like another trade is coming right in your way. Eliminate your passion for having higher profitable trades.
Have Some Patience
As a trader, you are on a rollercoaster, and there is no way to avoid it. This means you will face ups and downs throughout your trading experience.
When you take one step forward, you might have to take three steps backward. A person who only wants to win and is ready to do anything for it usually looks for easy fixes. This will lead to immense frustration for you. Patience is good for a trader in many ways. It helps them make the right and wise decisions.
Use 24 Hour Rule
Have you seen someone who started revenge trading after losing their trade? The 24-hour rule is best for this type of traders and can help them a lot.
It gives them time to get over from the loss. This simple rule helps them control their behaviors towards their loss or win. Traders only need to walk away from the screens and think about it. This is a kind of magic and halts them from doing revenge trading.
So, make trading your passion, not addiction. This way, you will not only enjoy your forex trading but can also make the right decisions at the right time to earn large profits.