i have seen so many traders in my life who already lost huge amount of money in Forex with long time , but still doing trading , really i feel surprised and think always this place actually really an addiction ? why people cant ignore Fx after making huge losses ?
For those folks - probably same reasons as to why people go to Casino or keep buying lottery tickets.
They are here on the forum as well. Making losses for decades, making the same mistakes again and again and again yet keep giving advice and pretending like they are profitable.
Yes, people lost their money in Forex but continue in trading to overcome their loses and try to avoid their mistakes they have done before and try to make profit.
there is a really old saying that "everyone gets what they want from the market" Ive heard and read a lot of sad tales as well. The cool thing is the Market is like the best bookie on the planet, you can bet as big as you can dream ( and often even 2x-4x bigger with credit). Unfortunately, the Market can be like the worst bookie on the planet she doesnt cut you off nor does she care or even see your misery. I really have to work on catching myself sometimes, it takes a lot of mental energy. You can probably feel it when youre playing and just gambling vs trading. Ive known some legit degenerate *** gamblers, the s*** is real dude. You get a rush, dopamine, adrenaline just like other addictions. But just given what you stated doesnt necessarily mean theyre degenerate gamblers, trading is a tough business. So to answer your question huge losses doesnt necessarily = gambler. trading is a tough business. If you talk with them for just a few minutes you can probably tell if theyre degenerate gamblers or just hit some bad variance.
Any game that has these 3 traits are addicting: 1) Near misses on large payouts 2) Perception of skill 3) Continuous Trading (not just forex) checks all the boxes. Considering most traders are noise traders, they are no different than the person sitting at the slot machine. Most people reading this will say "not me" (including myself) - we all think we have the skill to win. That we are better than everyone else. Just like how most people think they are above average drivers. Because of this, we will sit at the slot machine, reloading every time we run out of ammo. Why? Because "this time it's different". Trading can and does ruin lives. It also provides lively hoods for those who understand what trading is really all about. This is the number 1 reason why technical analysis is so popular. It gives you the perception of skill - "I can see the patterns". For those who are on your 10th bullet, remember the words of Albert Einstein - "Insanity is the act of doing the same thing expecting a different result".
ONLY FOREX? not stock market? research has shown that given two choices: one with a much more likely win but small reward and another with unlikely win but huge reward most people choose the latter option. that said most experts who teach and many who dont, say it took them 8-10 years to become profitable. especially for short term /day trading with leverage. where you need precise entrys and exits. i know it took me 13 years and over 100000 usd
I don't see it as addictive. Its movement has been rather tame. but 12 years ago, forex was widely mentioned and very popular. look at GBP. it dropped from 2.1 on 4Q07 to 1.3 on 1Q09 ie 40% drop in just few months.