Day trading is highly addictive as a result of increasing the release of pleasurable neurotransmitters in the brain such as dopamine. Those with underlying mental health issues such as a personality disorder, depression, anxiety, or ADHD are also more prone to develop pathological issues with day trading.ĭay trading addiction centers in the brain as changes in the brain’s structure and function cause cravings, changes in mood, and changes in behavior. Why Do People Get Addicted to Day Trading?Īnyone who engages in day trading is vulnerable to day trading addiction, but those with a history of addiction in their families are more likely to develop an addiction than those who do not have a history of addiction, be it with alcohol, drugs, or any behavioral addiction. Nonetheless, it is worth noting that investing in the stock market, cryptocurrency, Forex, or any other financial instrument can still be problematic and addictive. Although investing in financial instruments also poses psychological risks, it has less propensity for addiction than day trading. Day trading and all related activities completely engulf the life of an individual addicted to day trading as it becomes the primary area of focus and interest for that individual.ĭay trading differs from investing in that investors buy assets for long-term holding, thus posing less risk for adverse consequences compared to buying and selling assets on a weekly or daily basis, sometimes numerous times per day. For example, this may include excessive technical analysis of asset charts and indicators, superfluous attempts at understanding market fundamentals, constant checking of price action or positions, or exorbitant research of market sentiment via news, social media, online forums or other sources. It is not only day trading itself that has been increasing and problematic, but many of the behaviors associated with trading as well. Day trading addiction can also be referred to as problematic day trading (when continuous day trading results in a life problem), binge day trading (when excessive day trading is isolated to certain periods of time be it weeks or months apart), compulsive day trading, or pathological day trading. If you or a loved one are experiencing suicidal thoughts call 988 or 911 immediately.ĭay trading addiction is considered a subset of gambling addiction by most experts, and falls on a spectrum from mild to severe. In extreme cases day trading addiction can lead to suicidal ideation and ultimately suicide. Individuals with a day trading addiction will continue to trade even when they know it is causing them problems in areas of their lives such as their careers, their relationships, or their mental and physical wellbeing.Ĭonsequences of excessive day trading include but are not limited to financial loss, educational or career problems, mental health issues such as depression, anxiety or ADHD, physical health issues, deterioration of relationship, neglect of personal hygiene, sleep issues or insomnia, failure to perform responsibilities, and other life problems.
Regardless of the type of instrument being traded, individuals with a day trading addiction have a preoccupation, obsession and compulsion to buy and sell assets to the point where the individual’s day-to-day life becomes impaired. Additionally, cryptocurrency trading (such as Bitcoin or Ethereum) has grown to be highly popular among day traders, and is notably addictive due to its volatility and 24/7 trading hours.
Examples of some of the most commonly traded financial instruments include stocks, bonds, commodities, futures contracts, options, mutual funds, ETF’s, and currencies (i.e., Forex). For others, it has led to financial loss, and in extreme cases financial ruin, severe depression, separation or divorce, and day trading addiction.įOR INFORMATION ON FAMILY ADDICTION SPECIALIST SERVICES REGARDING DAY TRADING ADDICTION OR OTHER ISSUES PLEASE SEND AN EMAIL TO Is Day Trading Addiction?ĭay trading addiction involves the continued uncontrolled practice of buying and selling financial instruments. For some, day trading has become a fun hobby, a way to earn some extra income, or even a lucrative career. While these developments have been incredibly positive in many ways, there have of course been drawbacks. Online exchanges and mobile trading apps have made trading incredibly easy, accessible, and free. Today, with the rise of online trading platforms, day trading has become increasingly popular among retail investors. There was once a time when the only individuals who day traded were those who worked for large financial institutions, brokerages, or trading houses.
0 kommentar(er)
