Do you find yourself devoting a large amount of time to trading? Believe it or not, spending excessive amounts of time trading isn’t such a bad thing, as long as you avoid burnout. In fact, some of the perks and downsides to trading often enough can even carry on into your everyday life. Just take a look at the following signs to find out if this is happening to you.
You Don’t Spend as Much Time Looking on the Bright Side
Full-time traders actually tend to have more of the “glass is half-empty” mindset, which can cause them to think worst-case scenarios when it comes to making decisions. This is because as a trader, you constantly have to think of what you’re risking and what you’ll lose if the market moves against you so that you can be prepared by setting proper stop losses, etc. Before we even open positions, many of us try to look ahead to check for any factors that might cause things to turn out differently than we expected, so we’re always prepared in case things go horribly wrong. If you spend a lot of time trading, you might find yourself thinking of everything that could go wrong in everyday life as well. Remember, it’s good to be careful and to weigh decisions, but you shouldn’t allow yourself to become too anxious when making life decisions.
You’re More Prone to Overthinking
When you’re trading, there’s so much to consider, from technical and fundamental analysis to microeconomic events, to how much you might lose on the trade you’re entering – it’s enough to make your head spin. Many traders find themselves going back and forth in their minds wondering if they’ve made the right decision to enter trades, thinking of what they could have done differently, how they might have interpreted a piece of information in the wrong way, and so on. As a trader and in everyday life, you might start thinking of every possible scenario for a situation because you become so used to overthinking. If this sounds familiar, try to relax a little and have more confidence in your trading plan, or you might find yourself too anxious to enter trades at all. This leads to a common anxiety-fueled trading problem known as analysis paralysis, but that’s a subject for another time.
You Have More Realistic Expectations
While our first two signs can cause a negative impact on traders, this one can actually help you out. Many beginners start out with unrealistic expectations about what trading will be like, especially when it comes to the amount of money they will make. The more time you spend online, the more you realize what is and isn’t possible, so you learn to adjust your expectations and you can avoid disappointment. This can also help you understand what to expect from central bank announcements and other news that can affect the market so that you’ll stay calm when others might be panicking. Learning how to look at the bigger picture and mastering the ability to set realistic goals will do you a favor when you’re living your life as well, as you will be better prepared and more likely to avoid disappointment when things don’t go your way.
You Don’t Beat Yourself Up Over Losses
The world may be divided in many ways, yet we can all agree that losing money is never a good thing. However, it’s something that is bound to happen from time to time if you’re a trader. Have you accepted this fact, or do you find yourself becoming emotional whenever you suffer a loss? More experienced traders understand that losses are inevitable, so they just brush it off and move on. This doesn’t mean you shouldn’t ever feel a little sting when things go wrong, however, learning to manage these emotions will make you a better trader in the long run. Keep in mind that there’s nothing you can do to change the outcome once the money is gone but learning from your mistakes can help you to avoid losing money to the same problem in the future. This applies to whether you lost money trading, gambled it all away in Vegas, or lost it in some other kind of situation.
You Start Noticing the Spreads on Foreign Exchange Counters in Airports
Prior to starting your trading career, you probably didn’t pay much attention to the foreign exchange counter prices when buying foreign currency in airports. Unfortunately, airports are usually one of the most expensive places to purchase foreign currency because of poor exchange rates and high fees. Once you become an adept trader, you’re far more likely to shake your head at these prices and you might even decide to buy at the bank instead. This is one way that being a trader can help you to make decisions that are more financially savvy, where others just don’t realize that they are practically being robbed by paying such high prices. We all know movie theatre popcorn prices are insane as well – some of us choose to buy there regardless, while others eat beforehand or sneak snacks in with us to avoid it. Still, it’s good to be aware when you’re being charged high prices so that you can decide for yourself whether it’s better to pay there or to look for another option.