The impulses in our brain that make us feel good after winning and bad after losing are crucial to development, it's only when they overwhelm us and cloud are decision-making they work against us. Like most things, it's good in moderation.
I like the concept of: Greed is Good.'--Gordon Gekko Greed led to the 2000's housing bubble, followed by the market implosion of 2008. I know that may sound like a weird thing to like or endorse,but i do...Options traders live for this kind of crazy environment volatility. Moderation is for long-term slow, sleepy mutual fund investors...happy with their peanuts 5% a year returns. Greedy forever and ever...in excess...you can Have it...if you want it" funny song from the movie Ruthless People 1986
I'm talking about endorphins and hormones that control us, not volatility. A good trader needs to make good returns in medium volatility markets as well. Obviously high volatility is best for most.
Compared to casino games like poker and BlackJack, addiction in housing bubble and trading in stock and derivative helps to country. For example, housing speculation helps lots of construction workers and option traders helps corn/petroleum workers in trading liquidity. Of course, equity trading helps IPO for new company. Without numerous suckers in trading, there will be NO ENOUGH LIQUIDITY like today. That is why most country welcomes the addicted sucker in zero-sum trading, as well as paying tax. We know roughly 90% loses eventually. Please comment me if my propositions are wrong.
In poker I often I see guys get extremely upset (like when they lose with pocket aces) at a loss, then throw money away trying to win it back with worse hands. My view is you have to see the bigger picture and realize you'll win and lose, you can't play well if you don't plan on the losses as part of the play. Just need to be smarter and win more than you lose. Sometimes cut your losses and run.. other times you have lots of outs (ways to win) and if you play the percentages you'll come out ahead. (I think, the most common error in casinos (craps & other games) is to think just because you lost 4 in a row that you're bound to win the next throw so a person thinks they can increase their bets and win it all back on the next throw ... if you keep doubling up, you'll run out of money before the odds turn the game around.
The End... lol Everything has probabilities, that's why we're addicted to things that has probabilities...
Video game makers know that random interval reinforcement makes the most addictive games. Like WoW. This same dynamic is at play in day trading. Random rewards. So yes, at it's core day trading is very addictive.
Agree with this, random chances is very addictive for everyone. But the random chances in forex trading is actually happen at that time, there was no set up.
One description would be: To have an addiction is to lose objectivity (or to not be able to act on what objectivity you have). Mark Douglas said to be a successful trader you have to have objectivity. And to get better as a trader, more objectivity. I agree with RN, they are worlds apart. Schizo has a point with probabilities and math. One bases a plan on math and then is able to be objective about trading it, or not. Again, one has to objectively trade their plan, their process… if they are making consistent money or not. Of course you want to net be profitable. Not making consistent money might make it feel like gambling or an addiction, but trading successfully... brings out more and more objectivity in a trader. A different kind of maturity.