Maslow’s Hierarchy of Needs
I consider this post as extremely important one, especially for those who are full-time into markets. For those uninitiated, please run a search for Maslow’s Hierarchy of needs to get further understanding of the concept.
Let me give a brief introduction though. Maslow’s Hierarchy of Needs, also known as Maslow’s Theory of Human Motivation, is a popular motivational theory that explains variety of needs that humans typically have and that is categorized across different types.
Maslow's hierarchy of needs is an idea in psychology proposed by Abraham Maslow in his 1943 paper titled "A theory of Human Motivation". Here is the popular pyramid of Needs which captures the essence of Maslow’s concept.
- : January 31, 2021
- : B. Krishnakumar
The graphic above broadly captures the variety of needs that drives and motivates a human-being over the life span. At the bottom of the pyramid are the basic needs and higher up is the more important psychological needs that we are concerned about as traders.
Whether you realize it or not, every one of us have this basic need to massage our self-esteem and / or ego. We need to feel good about ourselves for general well-being and progress. The problem arises when you are looking at trading to satisfy this need.
The unique nature of trading is that even if you do everything according to your process, there is no guarantee that you will end up with a profitable trade. Similarly, without even following any rules, a random trade can deliver fancy profits. This dichotomy is something that lots of newcomers find it difficult to realize, accept and digest.
Given this unique nature of trading, if we try to satisfy our psychological needs from trading, it could compound our problems. Remember, there is a thin dividing line between being passionate and getting addicted to something.
Do not get too attached or passionate about trading. Let trading be just another activity you love doing. Try to engage in more than one activity unrelated to trading, that you enjoy pursuing. This activity could be any hobby or even hanging around with friends. Try to spend quality time with your family / friends which will do a world of good to you as traders.
If you do not actively engage yourself in any other activity outside of trading, it means you are addicted to trading and it is not the same as being passionate. Addiction to anything is bad. Addiction takes a toll on your mental and physical health.
The message here is that everyone of us have this basic psychological need to feel good about ourselves. Avoid using trading as the activity to achieve this need. If you do this, it can aggravate your misery.
If you can relate to any of the aspects mentioned below, it probably means you are addicted to trading and you need a detox.
- Unable to focus.
- Difficulty in being disciplined in trading.
- Getting irritated for trivial things.
- Like to avoid social interaction.
These are some signs that your trading activity is dominating your psyche. Take it easy and engage in some other activity that you enjoy. It could be gardening, photography, fitness, learning a new skill like playing to new sport or computer coding or anything else that you enjoy doing. Also try to include constant interaction with people you love and /or respect.
Hope this helps!!