Can You Be Addicted to The Stock Market?
Just like playing the lotto or hitting slot machines, trading on the stock market has the potential to become highly addictive. Buying and selling stocks is something that usually appeals to extroverts; individuals who are highly driven, determined, clever, and who perform well under stress. For a lot of people, successful trading requires a serious time commitment and extreme dedication. While having a great work ethic is certainly something that’s needed to succeed in the financial markets, the line between working hard and being addicted to the stock market is incredibly fine. Unfortunately, crossing that line can be the difference between making a smart investment and suffering significant financial losses.
Can You Be Addicted to The Stock Market?
If you or someone you love is a day trader, you might be concerned they are trading compulsively or addicted to the stock market and engaged in trading-related activities. It can be difficult to determine if someone is addicted to the stock market, especially when the party in question shows up to work on time, rarely ever calls out sick, and is super-dedicated. However, there are some definite signs of a day trading addiction, which should not be overlooked.
The Addictive Nature of the Stock Market
The reason why trading on the stock market is addictive is the same reason why sports betting, alcohol, drugs, fast food, soda, and anything else can be addictive; it has to do with the brain’s makeup. When a trader earns a profit from an investment – or simply finds the idea of earning a profit exciting – the brain releases neurochemicals, such as serotonin or dopamine. These neurochemical surges create a sense of pleasure and satisfaction.
In short, the brain’s reward system is activated and eventually, can become dependent on stimulation in order to experience pleasure. Over time, a person can be conditioned to trading activity in hopes of experiencing that euphoric thrill that was experienced the first time they earned a profit.
Signs of Stock Market Addiction
Just like an addiction to anything else, someone who is addicted to the stock market can exhibit some unmistakable signs. The following are some of the telltale warning signs of stock market gambling addiction:
- Taking significant risks without a strategy
- The need to make bigger investments in order to achieve that feeling of excitement or euphoria
- An obsession with researching and trading
- Constantly keeping tabs on the stock market
- A loss of interest in things that you used to enjoy in order to trade
- Suddenly becoming antisocial
- Unhealthy and undesired symptoms when the person isn’t trading; irritability, stress, anxiety, depression, etc.
- The need to trade on the stock market in order to experience pleasure
- Lying to loved ones to conceal financial transactions, including both earnings and losses
- Financial hardships and making risky financial decisions as a result of trading; using retirement funds, taking out payday loans, selling assets, stealing, etc.
- A strong urge to engage in trading -related activities
How Mobile Trading Apps Contribute to Trading Addiction
The rise of mobile trading apps has made investing more accessible than ever before. While this convenience is beneficial, it can also be a double-edged sword for individuals prone to compulsive behaviors. Mobile apps encourage frequent trading activity through user-friendly interfaces, instant notifications, and even gamified experiences like badges or rewards for trades.
For someone who might already be vulnerable to a gambling addiction, these apps can amplify the problem.
How to Handle an Addiction to the Stock Market
If you or someone you love is exhibiting one or more of the above-mentioned symptoms or is showing any other signs of stock market addiction, help is available. Lifestyle changes and seeking the help of an addiction counselor are two options that can help to combat an addiction to the stock market.
In particular, cognitive behavioral therapy (CBT) has shown to be an effective approach for individuals struggling with trading addictions. Working with a family addiction specialist can also provide support in overcoming these behaviors and rebuilding relationships with family and friends.
Additional Information: Is Pathological Trading an Overlooked Form of Addiction?
Blue Sky Counseling – Addiction Counseling in Omaha, NE
I, Carly Spring, M.S., LIMHP, LADC, CPC, offer my specialized expertise to assist in the healing process to anyone who may be experiencing and suffering from a vast spectrum of mental health issues. Such mental health issues include behavioral problems, anxiety, depression, grief, loss, trauma, addiction issues, and life transitions. I believe strongly in applying a holistic perspective addressing your whole person not just the bits and pieces of you. Contact us with any questions or to talk with an addiction counselor in Omaha today.
