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Forex Psychology – Trading Can Be Addictive (1)

 

‘Addict’ is a dirty word associated with the perceived down and outs of society, those who sleep on a park bench or live from one needle to another. But addiction invades slowly and surreptitiously and can hit anyone at anytime, although some are more susceptible than others. Genetic components definitely can and do play a role. Research has shown that the brains of addicts metabolize and process their drug quite differently from non-addicts. There is reason to believe that one part of the brain in particular is involved and that when it has been activated, the addiction takes over and stimulates uncontrollable behaviors.
Trading involves intense exercise of the brain and the will. It constitutes constant analysis and problem solving as performance-based skills become increasingly fine-tuned. Serious players of chess, poker and successful athletes develop and grow in similar ways.
However, trading can become an instrument for destroying mind, soul, body and lives. For trading can become an addictive activity. Whereas an addiction to alcohol and other drugs are substance addictions, an addiction to trading is a process addiction and thus much more difficult to spot and overcome. There is a great deal of research in this area that has yet to be done but consider the following:

The science behind addiction
Addiction to alcohol or other drugs is a progressive neurological disease strongly influenced by genetic vulnerability. Inherited or acquired abnormalities in brain chemistry create an altered response which in turn causes a wide array of physical, psychological and behavioral problems. Although environmental and social factors will influence the progression and expression of the disease, they are not in any sense causes of the addiction.
What takes place is the creation of a new generation of chemicals known as tetrahydroisoquinollines, TIQS for short, which are almost the spitting image of a family of pain-relieving compounds known as the opiates. Like the naturally occurring opiates, the endorphins and enkephalins and the synthetic opiates morphine and heroin, TIQS are addictive substances. If TIQS are formed in sufficient quantities in certain crucial areas of the brain, they can induce changes in brain chemistry that generate pathological cravings.
It becomes highly likely that the same processes are involved in regard to addictions to trading. If you have family members who have addiction problems, then your susceptibility to becoming addicted to trading becomes a real danger. As with alcohol and other drugs, trading can be used to numb feelings and escape from life. Ask yourself this question: do I have a passion for the forex market or for trading?
Forex-trading coaches, psychologists and countless books will talk about losing self-discipline, self-control and patience.But seldom will the very real danger of addiction be contemplated and addressed. Very often, losses of the aforementioned attributes in the market are related to addictive patterns of behavior.
An addiction occurs when an activity provides a strong source of stimulation that, over time, a person becomes psychologically and sometimes physically dependent upon. We generally label a behavior as an addiction when people seek out the activity even when it is destroying everything and everyone around them. It is the inability to stop the activity when those consequences interfere with life that marks any addiction. This can be more simply expressed: who is in the driving seat, me or my desire to trade? Do I find it impossible to keep out of the market? Do I repeatedly attempt to curb my behavior but fail miserably over and over again?


Source : LEARN TO TRADE

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