A day trader by any other name. Both gambling and high-risk stock trading generate a rush of dopamine in some people, says Lia Nower, professor and director of the Center for Gambling Studies at Rutgers School of Social Work in New Brunswick, New Jersey.
Stock trading can be a form of investing. But when the incentive becomes getting the dopamine-induced rush of making a trade, investors become gamblers in the stock market.
there are generally three sub-types of people who develop a gambling addiction:
- Those with no history of mental health problems who gamble for fun, but gamble more than they can afford to lose.
- People with histories of depression or anxiety, or child abuse or neglect, who are looking to escape from themselves or feel excited and alive.
- Pleasure-seekers or impulsive risk-takers, who often also engage in other high-risk activities like drug use.
Symptoms of addiction to day trading:
- Spend more and more time on the stock market, such as continuously check your positions
- Trading has become the main activity of your day
- Feeling compelled to day trade and becoming restless or irritable when attempting to cut down on trading
- Trying to recover losses and restore control by trading more, sometimes in increasing denominations
- Your outside life being impacted by your trading
- Suicidal ideation due to financial losses
Red flags that your day trading may be addiction
Trying to time the market
buying and selling stocks frequently rather than investing long term
investing in risky stocks
Double diagnosis - self-treat feelings of depression with trading
Actionable Items
Is a single person at risk to be a gambler instead of investor?
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