As a new trader, I believed trading was an easy way to make money online. However, I soon discovered three hidden dangers of trading that derailed my life. In this blog post, I will reveal these dangers and how I overcame them.
Danger 1: Trading Addiction
Early in my trading career, I became obsessed with learning as much as possible about trading. I spent countless hours studying price charts, reading blogs, and watching YouTube videos. This addiction disrupted my work-life balance, strained my relationships, and negatively impacted my health.
Solution 1: Choosing the Right Trading Style
To overcome my trading addiction, I chose swing trading over day trading. This allowed me to make trading decisions once a day and let my trades play out over a longer period. This decision helped me regain control of my life and find a healthy balance between trading and other aspects of my life.
Danger 2: High Risk of Financial Loss
When I started trading, I was blinded by the potential for huge profits. I focused on increasing leverage and overlooked the risks. I blew up multiple trading accounts, and within my first three months, I had lost 92% of my initial investment.
Solution 2: Learn a Proven Strategy and Start with a Demo Account
To minimize the risk of financial loss, I sought a mentor to teach me a proven trading strategy. Instead of jumping back into live trading, I practiced on a demo account for six to eight months to master the strategy. This approach helped me build confidence and minimize the risk of losing money in the future.
Danger 3: Emotional Pain and Mental Problems
Losing money in trading led to feelings of worthlessness, depression, and anxiety. The emotions of fear, greed, and stress took over and perpetuated a vicious cycle of depositing and losing money.
Solution 3: Taking a Break After Every Trade
To cope with these emotions, I started taking a one-day break after every trade, whether I made a profit or a loss. This allowed my emotions to cool down and helped me approach trading with a clear mind and objective perspective.
Trading can be a perilous journey filled with hidden dangers. However, by learning from my experiences and applying the solutions I’ve shared, you can avoid these pitfalls and achieve success in your trading career.
Additional training mentioned in the video:
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