Can Trading Futures, Forex Or Stocks Be Addictive?

addictiveFutures, Forex Or Stocks Be Addictive?

Real addictions are a very grave matter and while trading doesn’t involve the consumption of any substances, there are those that believe that trading is truly addictive.

The tremendous emotional rushes that most traders experience both prior to placing a trade and while in the middle of a big winner or big loser are an acknowledged part of trading, but are traders truly becoming addicted to trading?

Is there a need for help for traders, or is the situation one where the high percentage of traders that lose money is simply due to them still being in the learning curve and suffering the losses as a normal part of “paying your dues”?

In this article we are going to investigate the matter and determine if there is sufficient evidence to support the hypothesis that trading is indeed addictive.

So what constitutes an actual addiction? There are two categories of addictions, physical dependence and psychological addiction. There is a considerable amount of information on both and certainly beyond the scope of this article, but a brief summary follows

From Wikipedia, the definition of “addiction” includes:

“Psychological addiction, as opposed to physiological addiction, is a person’s need to use a drug or engage in a behavior despite the harm caused [emphasis added] – out of desire for the effects it produces, rather than to relieve withdrawal symptoms. …. it becomes associated with the release of pleasure-inducing endorphins, and a cycle is started that is similar to physiological addiction. This cycle is often very difficult to break.”

Also,

“Psychological addiction does not have to be limited only to substances; even various activities and behavioral patterns [emphasis added] may be considered addictions if they are harmful….”

From Merriam-Webster Online, the definition of “addicted”:

“1 : to devote or surrender (oneself) to something habitually or obsessively”

So an addiction could be described as a person feeling the “need” to repeatedly engage in a particular behavior to satisfy a desire for the emotional effects that is has, the feelings that it produces.

It is a desire that they have rationalized into a need, to which they have surrendered control, and they have allowed the behavior to develop into a habit. This is physiologically compounded by the endorphins released into the system that provide a physical feeling effect as well.

Let’s look at some of the necessary practices (behaviors) of trading to achieve consistent profits and some of the behaviors exhibited by many traders and see if they fit the above.

One recognized critical practice for profitable trading is good risk management. At the heart if this is making sure that the risks you take are measured and calculated risks.

You want to keep your losses small when they occur and avoid them all together when possible (such as NOT getting into bad trades). Key tools commonly used for controlling potential losses include risk / reward calculations and stop loss orders.

Risk/reward calculations are necessary on every trade so that you know whether each trade is a sound business decision.

Stops are used so that then a good trade is placed but the market doesn’t do what you’d expected. With the leverage in trading that can work for or against you, risk management is essential.

General money management is another critical practice to make sure that your trading business will still have the doors open months and years from now.

It includes risk management but the focus is on a larger scale and a broader scope, such as looking at what percentage of your available capital you are placing on any given trade, regardless of the details of the specific trade.

These practices may appeal to the intellect, but how they feel is where traders get into trouble. There are several common mistakes repeatedly made by traders that bring large losses, missed profits, and ruin for many.

These mistakes run in direct conflict with the known and established good practices for consistent and profitable trading, yet are made over and over again by the same traders.

Since they are repeated, it would be reasonable to say that they have become habits. Let’s examine these habits from the perspective of the emotional response for the individual.

Trading without a plan, also known as entering a trade without an exit strategy for the trade.

The trader doing this is usually not following a technical system and is going more on their hunches than sound calculations.

This right here is an indicator that they are allowing their feelings to dictate their actions more so than their reasoning and rationale.

If the market moves in their favor, it reinforces the decision to follow their intuition and feeds the ego in being right.

Another very elemental factor is suspense. If one has the trade planned out and there are no surprises, it takes all the suspense out of it. Why do people love a good mystery novel or movie?

They love sitting on the edge of their seats and reveling in the suspense of it all. When you know the end of the story it takes all the fun out of it and who wants that?

addictive

Refusal to use stops. The comment often heard by brokers is “No, I don’t want to get stopped out. I’ll just watch it.” This is true for initial stops and quite commonly for trailing stops after the market has moved in one’s favor.

The trader is putting a lot of energy in to their feelings hope and anticipation. The ego is also being fed here, “knowing” that the market will do as they desire.

As the move goes their way, they are experiencing a tremendous thrill, plus the validation they desire about them being a better trader than they truly are.

When the market moves against them, the opposite feelings are amplified and only create a greater need to be validated. This also again, involves a lot of suspense and anticipation.

Over-trading regarding frequency, A.K.A. trading too often. Usually in this circumstance the trader is feeling the need to satisfy their perception of lack.

They may have just experienced a string of losers or a very large loss and now feel that they have to recoup their losses and absolve themselves for the previous errors.

They are feeling bad about themselves and rather than do what they know is right, they simply want to have the bad feelings go away.

Placing trades that are too large for the account. One of the more interesting aspects of this particular mistake is that besides the greed factor, people get a bit of a thrill going against the rules and particularly stepping outside their comfort zones.

The simple act of rebelling or being adventurous is what many got a taste of when they first got into trading and how it is so different from what they’d ever done before.

The new territory has its appeal and stepping out of the norms and standard rules has a strong gratification associated with it. Of course the greed factor is pretty strong here as well.

Only risking 2-5% of your account and the prospect of a measly couple hundred dollars just doesn’t match up with the big numbers one had in mind with trading, or what’s heard often in the ads for the various trading systems available.

When you’re only making $800 on this trade and you see and an that claims “I made $9,700 on my first three trades!!!”, that reasonable profit you made just isn’t very satisfying.

One thing worth pointing out right now, and it directly relates to our subject is the fact that people will make mistakes.

People only knowingly repeat them when there is a problem. If you get up out of bed in the morning and stub your toe on the footboard of the bed, you wouldn’t stand there and keep smashing your toe again and again.

You’d stop, unless of course there was some sort of additional response that was strong enough to compel you to do it repeatedly until your foot was completely mangled.

You’d only smash your thumb when hammering a nail once before you changed how you were holding the board – unless something was wrong.

In comparing the repeated trading mistakes with the established good practices, it is in the emotional responses of the mistakes being made. Suspense, personal absolution and validation, excitement, feeding the ego, being right.

These can be very powerful and provide enough stimulus for the person that it over-rides their better judgment.

The actions involved in the two sets are in direct contrast regarding both the financial results and how they feel to the trader.

Knowing the outcomes for a given trade, keeping the risk small, managing money wisely – these are boring and provide no suspense. Lacking surprise and done with a knowing, good trading provides a much lower emotional confirmation of a traders ability on the emotional level.

When you’re good and you know your good and produce consistent results, those consistent results are not a huge celebration.

When you’re a rookie and you do well, it is much more gratifying, especially if you hit a big one. That’s a huge ego feed.

There is an inverse relationship between the discipline necessary for good trading practices and the emotions involved in unhealthy trading.

The discipline itself runs 180 degrees against the satisfying emotions and denies them to the trader.

That is one of the primary reasons that so many traders struggle with the emotional aspects of trading. It is the way that they are trading.

They are trading in a manner that fuels their emotions, and established poor habits – both active and emotional habits.

If they would focus on establishing healthy trading habits and practices, follow the established wisdoms and observe themselves in their trading, do the simple things that they are supposed to do, their emotions would not flare up so badly and they could begin to break the cycle.

Trading itself is not addictive. There are a great many traders that trade in a healthy manner and enjoy the lifestyle that goes with it.

There are aspects of trading that set the stage for the individual to become addicted to trading unwisely.

So it is not in the activity itself. It is the focus of the individual and the habits that they establish early on in their trading that determines whether or not they become addicted and suffer.

It is up to the individual to be aware of themselves and their practice to safeguard against addiction to poor trading.

Education, assistance and proper guidance would be the best recommendation for traders, and these should be pursued as early as possible.

The longer the habits are in place, the longer it takes to break them and re-establish healthy trading practices.

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Silver Commodity Valuable Ever

Silver commodityWhy Is Silver Commodity Valuable?

We can maintain in thoughts Silver commodity treasured and shiny white metal, because of many prominent traits.

It is malleable, pliable, and beautifully lustrous.

This valuable metal is likewise reflective and conducts electricity extraordinarily properly, and it even kills bacteria.

These features make silver precious metal in various arrays of industries together with earrings, electronics, power, and remedy.

Is Really Silver Commodity Valuable?

Yet those developments best scratch the floor of why silver is critical inside the international economic system.

Silver might be uncommon and, with gold and six platinum institution metals, belong to a collection referred to as precious metals.

For hundreds of years, human beings have received silver as funding and store of price.

When Did Silver Commodity Mining Begin?

Silver mining began when historical civilizations in Asia Minor first mined the steel over five,000 years in the beyond.

Almost 1,800 years later, the Greek Empire began mining silver as foreign money, and of the peak of the Roman Empire, silver is a critical buying and promoting commodity alongside the Asian spice routes.

The Spanish conquest of the New World inside the 15th century, however, proved to be the maximum pivotal second in the records of the commodity.

Dramatic will increase in silver mining in Bolivia, Peru and Mexico happened between 1500 and 1800 AD.

These 3 international locations accounted for 85% of the world’s manufacturing because the Spanish gained a foothold inside the Americas.

Since then, recent discoveries in the United States, Australia, Central America, and Europe have bolstered production internationally.

Silver commodity 2

How Much Silver Has Ever Mined?

Despite the lengthy facts of silver mining, manufacturing, and reserves of the metal fantastically confined.

A 2004 document thru the US Geological Survey expected the entire amount of silver mined from antiquity via to 2001 at 1.26 million metric heaps (half of of of that being mined over the past 62 years).

More current estimates vicinity the entire quantity mined in records at 1. Five million metric heaps, which equates to most effective a 52-meter dice of the steel.

Where Does Silver Commodity Come From?

Silver hardly ever determined within the Earth’s crust as a neighborhood detail.

Instead, miners discover the detail as a byproduct of mining for lead, zinc, copper, or gold.

Recent manufacturing of silver has declined because of a drop off in lead, zinc, and gold production.

Which Countries Have the Largest Silver Reserves?

Silver reserves are a measure of economically minable silver this is inside the floor.

However, mining is a high-priced project, so the charge of a metal determines whether it’s far viable to mine it.

What Drives the Price and remodel the silver Valuable?

Silver is a risky commodity that reacts to both monetary facts.

These elements are the most essential drivers of silver prices:

Supply and Demand Silver Scrap Metal Industrial Demand Inflation and the United States Dollar Gold Prices.

Supply and Demand

It confines silver delivery, and manufacturing has been declining in the latest years.

Industry specialists assume in addition declines in the years beforehand because of higher mining fees.

Demand for silver, 50% of which comes from the company, stays stable. Investors need to word events that affect the supply/name for equilibrium.

For example, mining moves could constrain supply, at the same time as discoveries of the state-of-the-art silver deposits need to grow it.

On the call for a thing of the equation, adjustments in dealer urge for meals for silver, that’s a bargain extra volatile than industry call for, may also need to flow into prices. Silver Scrap Metal.

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Studying Silver Futures Symbol

Silver futures bestSilver Futures Symbol Trading 

It trades gold and silver futures on several exchanges across the globe. 

These units can provide investors exposure to gold and silver at the same time as handiest putting up a fraction of the total fee of the settlement.

Because of this leverage, gold and silver futures aren’t to take lightly and are no longer appropriate for all buyers. 

What Really is a Gold or Silver Futures Contracts? 

Futures contracts were first traded in the mid-19th century with the establishment of a valuable grain market. 

This relevant grain marketplace gave farmers the potential to promote their grain for instant delivery in what we call the spot marketplace, or that they had the choice to promote their grain for a positive price for a destiny delivery date. 

A futures settlement is a prison agreement among the purchaser and the vendor for the acquisition or sale of an asset on a specific date throughout a selected month. 

The purchase and sale of futures contracts facilitated thru a futures exchange and standardized in terms of best, amount, and transport time, as well as transport region. 

The fee of a futures contract isn’t always constant, however, and is constantly in a state of discovery thru an auction-like method on trade buying and selling flooring and/or electronic buying and selling platforms. 

With gold or silver, a futures agreement outlines a selected delivery time and place for “exact shipping” gold or silver bullion.

Silver futures best 2

Who Uses Silver Futures Contracts? 

Using futures contracts falls into broad classes: hedging and speculative purposes.

A hedger makes use of futures contracts to mitigate their price threat in an asset, at the same time as a speculator accepts this charge risk so you can try to make the most of favorable motion in prices. 

The marketplace wishes participation from both hedgers and speculators to feature nicely. 

Hedgers may encompass producers, portfolio managers, and clients. 

For example, if a farmer produces corn and concerned about the inn keeping with-bushel price of corn falling and consequently decreasing his ability earnings, she or he should sell futures contracts. 

If a corn farmer offered a futures agreement nowadays for transport in five months at a rate of $four.00 in line with bushel, then if the price of corn falls between now and the shipping date the farmer would lose cash on his cash crop but might offset the ones losses by using profits made at the sale of the futures agreement. 

In different phrases, if Farmer Joe offered corn futures at $4.00 in step with bushel and corn charges drop to $3.50 in step with bushel, the Farmer Joe might have a $0.50 earnings on every corn future offered that could offset the $0.50 loss he is seeing on his corn. 

By doing this, Farmer Joe has insulated himself from a large drop within the charge of corn that might adversely affect his potential income. 

On the flip side, but, if farmer Joe sells corn futures contracts at $four.00 in step with bushel and the charge of corn rises to $4.50 according to bushel, then Joe could get more money for his corn crop however can lose money on the short futures settlement. 

Hedgers ought to receive this potential income loss so one can lock in destiny costs. 

The bottom line is that many manufacturers and clients will give up the capability for extra earnings to defend themselves from the ability for loss. This is how futures contracts may try to mitigate price chance. 

Gold & Silver Futures Contract Value. 

A gold futures settlement is for the purchase or sale of one hundred troy oz. Of.995. minimal percent pleasant gold. 

A silver futures settlement is for the purchase or sale of 5000 troy ounces of.999. percent minimal nice silver. 

At today’s expenses, a gold futures contract could be worth about $130,300 with gold trading at $1,303 in keeping with ounce. 

A silver futures contract would have a value of $103, one hundred fifty with silver buying and selling at $20. Sixty three in keeping with ounce. 

Needless to mention, the overall agreement price will range as gold and silver expenses flow up or down.

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Silver Valuable Commodity Ever

silver valuableWhy Is Silver Valuable Commodity?

We can keep in mind Silver valuable and vivid white steel, because of several exquisite traits. It is malleable, pliable and beautifully lustrous. This precious metal is likewise reflective and conducts strength extremely well. It even kills bacteria. 
 
All of those functions make silver a precious steel in a diverse array of industries together with earrings, electronics, power and remedy.

Is Really Silver Valuable Commodity?

Yet those traits most effective scratch the surface of why silver is vital in the international economic system.
 
Silver could be uncommon and, with gold and six platinum group metals, belongs to a collection called treasured metals.
 
For heaps of years, human beings have received silver as an investment and save of cost.
 
silver valuable 2
 
When Did Silver Mining Begin?
 
Silver mining started when historical civilizations in Asia Minor first mined the metal over five,000 years in the past. 
 
Almost 1,800 years later, the Greek Empire began mining silver as a currency, and throughout the height of the Roman Empire, silver have become an important buying and selling commodity alongside the Asian spice routes.
 
 
The Spanish conquest of the New World in the 15th century, but, proved to be the maximum pivotal moment in the records of the commodity.
 
Dramatic will increase in silver mining in Bolivia, Peru and Mexico took place among 1500 and 1800 AD.
 
These 3 countries accounted for 85% of the world’s production because the Spanish received a foothold in the Americas.
 
Since then, new discoveries within the United States, Australia, Central America and Europe have a strengthened production worldwide.
 
How Much Silver Has Ever Been Mined?
 
Despite the lengthy records of silver mining, production and reserves of the metallic fantastically confined. 
 
A 2004 record through the US Geological Survey predicted the entire amount of silver mined from antiquity through to 2001 at 1.26 million metric heaps (half of of that being mined over the last 62 years).
 
More recent estimates place the whole quantity mined in history at 1. Five million metric tons, which equates to handiest a fifty-two meter cube of the metal.
 
Where Does Silver Come From?
 
Silver is hardly ever found within the Earth’s crust as a local element. Instead, miners locate the element as a byproduct of mining for lead, zinc, copper or gold. 
 
Recent manufacturing of silver has declined because of a drop off in lead, zinc and gold production.
 
Which Countries Have the Largest Silver Reserves?
 
Silver reserves are a measure of economically minable silver this is inside the floor.
 
However, mining is a luxurious undertaking, so the price of a steel determines whether it is possible to mine it.

What Drives the Price and remodel the silver Valuable?

Silver is a risky commodity that reacts to both industrial and economic statistics. These elements are the maximum crucial drivers of silver fees: 
 
Supply and Demand Silver Scrap Metal Industrial Demand Inflation and the United States Dollar Gold Prices.

Supply and Demand

It confines silver deliver, and production has been declining in recent years. Industry specialists expect further declines within the years ahead because of higher mining expenses.
 
Demand for silver, 50% of which comes from enterprise, remains stable. Investors need to note occasions that impact the deliver/call for equilibrium.
 
 
For example, mining strikes could constrain supply, even as discoveries of the latest silver deposits ought to increase it. 
 
On the demand aspect of the equation, changes in dealer urge for food for silver, that’s a good deal more volatile than industry call for, may want to circulate fees. Silver Scrap Metal
 

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Favorites Precious Metal Stocks

precious <a href=metal stocks" width="300" height="198" srcset="https://binbitforex.site/wp-content/uploads/2019/09/91821568231854-300x198.jpg 300w, https://binbitforex.site/wp-content/uploads/2019/09/91821568231854-20x13.jpg 20w, https://binbitforex.site/wp-content/uploads/2019/09/91821568231854.jpg 384w" sizes="(max-width: 300px) 100vw, 300px" />My Two Favorite Precious metal stocks

Before speaking about precious metal stocks, the 2 organizations I’m most excited about are my largest portfolio holdings (yes, there may be some clear bias right here): SSR Mining (NASDAQ: SSRM) and First Majestic Silver (NYSE: AG). 

Then once more, those are stocks I’ve held through acquisitions for a length of seven years and 4 years, respectively, with minimum promoting, so relaxation assured I’m no longer seeking a quick buck.

SSR Mining forecast to develop annual manufacturing at its flagship Marigold mine in Nevada by roughly 30% to 265,000 ounces of gold through the early part of the approaching decade, even as the Seabee mine, got via the Claude Resources deal, maintains to surpass manufacturing expectancies with ever-lower cash expenses.

SSR Mining additionally recently began production at the Chinchillas project, adding a brand new supply of silver manufacturing, and shopping for out the 25% stake that joint task partner Golden Arrow had owned.

As one of the few gold-mining stocks with an internet-cash position, SSR Mining nicely placed to take advantage of higher spot expenses.

Meanwhile, First Majestic Silver is heading in the right direction to generate an extra of its sales from silver (approximately 60%) than every other mining enterprise.

The transformational acquisition of Primero Mining delivered the San Dimas mine into the fold. San Dimas is rich with gold deposits and has been a normally low-fee mine because its assimilation.

With a handful of new silver mines set to come online over the following four years, and efficiency enhancements being made at present mines. 

It would now not be unexpected to peer First Majestic’s silver equivalent ounce production develop with the aid of greater than 50% among 2018 and 2022.

precious <a href=metal stocks 2" width="136" height="128" srcset="https://binbitforex.site/wp-content/uploads/2019/09/Precious-metal-stocks-2.jpg 200w, https://binbitforex.site/wp-content/uploads/2019/09/Precious-metal-stocks-2-20x20.jpg 20w" sizes="(max-width: 136px) 100vw, 136px" />

Precious metal stocks: Buy Gold and Silver Stocks

Although the one year profits in gold and silver may sound attractive, the lengthy-term overall performance of physical metals pales in evaluation to the publicly traded corporations that mine and bring those metals.

That’s because not like a physical ingot, corporations have the potential to reply to modifications in the market, and they may even pay a dividend, allowing buyers an opportunity to generate ordinary income.

What I believe makes gold and silver miners such an interesting opportunity right now — other than plunging international yields and financial loosening from the U.S. 

Primary financial institution — is their extensively improved financials and operating performance relative to in which the industry become 6. Five years ago, when gold final closed over $1,550 an oz..

Biggest Industry In The Precious metal stocks

Here’s a quick observe what all-in sustaining fees (AISC) had been like during the second quarter of 2013 for a handful of the industry’s largest names:

Newmont Goldcorp (NYSE: NEM): $1,548 an oz., including an impairment
Kinross Gold (NYSE: KGC): $1,072 an ounce
Barrick Gold (NYSE: GOLD): $919 an oz.

And here’s the AISC for those equal groups six years later:

Newmont Goldcorp: $1,016 an oz.
Kinross Gold: $925 an oz
Barrick Gold: $869 an oz. 

The factor is that not best must Newmont, Kinross, Barrick, and other gold gamers see a growth in sales as the spot price consistent with an ounce of gold rises, but greater prudent spending habits introduced during the last six years together with great debt discount efforts, ought to translate into extra of those sales greenbacks making it to these businesses’ backside lines.

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