Forex, or foreign exchange market, is the place where you can see the trading of currencies. It is the most liquid and the most extensive financial market in the world today.
Unlike other markets, Forex does not have a central marketplace to conduct foreign exchanges. Instead, the transaction happens via networks of the computers between traders located at any part of the world.
Thus, you can do whatever you want while trading since it does not require face to face interaction. For example, traders can even drink an alcoholic beverages while engaging in Forex trading.
Drinking intoxicating beverages has been a part of American culture for years. Drinking small amounts can reduce anxiety and can enable one to relax in the very challenging world of Forex.
However, consuming it in large amounts can affect the various functions of your body. For example, it can give you blurry vision, limited body movements, slow reaction time, slurred speech, nausea, and difficulty in processing information received when trading in Forex.
In this article, we will discuss the reasons why you should avoid Forex trading while drinking at all costs.
1. Drinking Will Make You Prone To Commit Simple Mistakes
It is advisable not to trade when drunk. You will need a clear head when you’re in the foreign exchange market.
Here are some of the things that might happen when you’re intoxicated:
- You may be prone to fighting someone when drunk since you’re less likely to be able to control your feelings. Surely, you don’t want this to happen since your account is at stake.
- Some people will also feel like they are fighting two opponents when drunk. Thus, they tend to make risky decisions now and then.
- Alcoholic drinks can affect the way you think and can make you commit simple mistakes during the trade. In the end, you will regret these things and may feel that if you were just sober, you wouldn’t have committed those mistakes.
2. Drinking Will Get You Distracted
If you are drunk, you may get distracted and be unable to concentrate on the charts. Here is an example of why you should not get drunk when trading:
- You might be waiting for a trade, but when you are drunk, you might get distracted. As soon as you come back to your chart, you will see that you have missed your trade or instead of selling, you buy it instead.
In the world of Forex trading, distractions are not pleasant. They can cost you a fortune and sometimes you will have a difficulty recovering from your losses.
3. Alcoholic Beverages Can Make You Emotional
Being intoxicated can make you emotional and sometimes you can’t be subjective when trading in Forex. Your mind will float somewhere else, and this can hurt your trading account.
Sometimes, you can lose your sensibility when you’re drunk and you see that big money is at risk. You can tend to make a big decision based on several emotions like greed and fear.
Being drunk and emotional can sometimes lead you to close your trade early and throw your trading plan away.
This is not good because you have invested time, money, and effort in your account, which all goes to waste once you attempt trading while drunk.
4. Drinking Can Cause Limited Body Movements
Alcoholic beverages can limit body movements, which will be hard in manipulating Forex trading.
Also, excessive amounts of alcohol can make someone lose control of themselves, and trade fast without even thinking. Indeed, your hard earned money can be at risk, and you may end up regretting it in the future.
5. Drinking Can Cause Addiction
Lastly, frequent consumption of alcoholic drinks can lead to addiction which can create a bleak future. You are also prone to committing the same trading mistakes all over again and losing your account in the end.
Once drinking becomes an uncontrolled aspect of your life such as with drunk driving, you may suffer from limited job opportunities and general problems going on with your daily life. You are at risk of ruining relationships, not just with your family members and friends, but with your brokers as well.
In sum, Forex trading is a fierce battle, and the question now would be, would you instead go drunk or sober?
Drinking alcoholic drinks can significantly affect your way of thinking if you consume them in large amounts. It can limit your body movements and make you slow in processing information about your surroundings.
Indeed when dealing in Forex, you have to prepare yourself with proper knowledge and tools. Remember that a sober trader has a higher chance of success versus drunk traders.
If you have legal questions about fair trading, it is advisable that you seek the help of a licensed lawyer immediately. They can guide you better in Forex-related matters and are able to advise you on how to protect your hard earned money.
April Sears has been a law writer for more than two decades, and she is currently working on her next piece. She also writes pieces on law topics for the common reader. April is family woman, and she loves spending her free time with her family.