Many come to trading seeking financial freedom, but end up trapped in a cycle of self-destruction very similar to alcoholism.
In his book The New Trading Lifestyle, Dr. Alexander Elder (psychiatrist and trader) issues a warning that every beginner should take very seriously.
🚩 The signs of “market addiction”
Elder explains that the losing trader behaves like an alcoholic in denial:
Denial: “It's not my strategy, it's that the market is manipulated.”
The high: You trade for the adrenaline rush of winning, not because you're following a plan.
Hitting rock bottom: You only stop when your account reaches zero or the financial pain becomes unbearable.
🛑 First step: admit your vulnerability
In Alcoholics Anonymous, the process begins by admitting powerlessness over drinking.
In trading, Elder suggests something equally uncomfortable: recognizing that you have a natural tendency to sabotage yourself.
It doesn't mean you can't make money.
It means you stop trading from ego and start trading from discipline.
🛠 The treatment: trading sobriety
To go from addict to professional, Elder proposes three 'rehabilitation' tools:
Trading journal: If you don't record your trades, it's like "drinking in secret." The journal is your reality check.
2% Rule: Never risk more than 2% of your capital on a single trade. It's your emotional safety belt.
6% Rule: If you lose 6% of your account in a month, it's over. You exit the market for the rest of the month to regain mental clarity.
👉 Trading is not just about making money, but about learning not to destroy yourself in the process.
What about you? Are you trading with a plan, or are you chasing your next "drink" of adrenaline? 👇
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