- Are you Trading with no stop loss?
- Do you move your stop loss to avoid a losing trade?
- Are you Trading a position above 1-3% risk – i.e. a position that leads to a 3-100% loss?
- Do you understand your trading methods/systems expectancy?
- Do you prioritise market knowledge/technical analysis over your discipline and risk management?
- Does Trading makes you anxious, angry or depressed?
- Do you get euphoria when you win and dark moods when you lose?
- Are you trading with borrowed money or money you cannot afford to lose?
- Do you hide losses from friends, family and fellow ‘traders’ and only crow about your wins?
- Have you lost disproportionately large amounts of money trading?
- Are you Chasing losses? Do you refuse to accept a loss Do you revenge trade each time you lose?
- Are you socially isolated? Trading is socially isolating, are you shutting yourself away completely from the outside world? Are you talking and seeing friends and family? Are you venturing outside, socialising and exercising?
If you answered yes to one, some or all, chances are high that you are gambling when you are sat at the trading terminal.
You need to understand trading profitably only comes after 5-10 years on average and those that do get to trading profitably consistently, still blow up their accounts 10, 15, 25 years down the line.
You need to accept trading Forex, Commodities, Crypto, Equities or Fixed Income in any of the bad ways above IS gambling.
There are an army of people ready to tell you trading Forex isn’t gambling but at retail level it is a seriously fine line between gambling and ‘trading’.
Those same people ready to tell you ‘trading isn’t gambling’ are closet gamblers, happy to quote professional trading firms, investment houses and hedge funds as a counter to this argument.
They will be quick to quote how a casino operates and how trading is nothing like gambling!!!
The truth is, over 99% of people retail trading spot Forex are in fact gambling.
Even worse – most people ‘trading’ spot Forex at retail level are either problem gamblers or pathological gamblers – I know this hurts people but that is the truth – you won’t hear that in wannabe trader circles.
Trading is an evocative pursuit, with hopes and dreams of riches, the reality is it is a road littered with the bodies of failed traders. 99.9% of retail traders lose – not 95%, not 78% quoted by your broker – it is 99.9%.
The dollar/pound signs in their eyes, chomping at the bit to place trades, scouring forums and social media for every tidbit of information or the search for the elusive holy grail indicator, only leads to more gambling and more disappointment.
This is of course totally delusional stuff. They are going round and round in circles in the belief they will hit is big or find that magic sequence or magic indicator that will make them seriously rich.
They plough on regardless plumbing new depths, revenge trading, chasing price round the screen and never coming up for air. They are in financial, physical and psychological pain.
These people are not traders – they never were, these people are gambling addicts and its about time the Forex community and wider trading community called it out for what it is.
If you have a negative return each month or suffer from any of the above traits I will happily tell you the actual reality of trading Forex for a living and will likely tell you to quit or do something else such as starting a business or furthering your career.
Anyone that tells you different is either a liar or wants your money.
You can reach me below if you need to talk.