The 10 Signs of Day Trading Addiction and What to Do to Stop

The 10 Signs of Day Trading Addiction and What to Do to Stop

With trading apps like E*Trade and Robinhood making trading simpler than ever before, day trading is becoming more and more common for people to use as a primary source of income or a side hustle. Day trading can go very wrong, but it can also be a reliable source of income from which many people build successful careers. Day trading can become addictive, regardless of whether a person first developed a day trading habit during 2020’s lockdowns or is a seasoned day trader with much expertise and experience in the market.

According to several financial experts, day trading is more like gambling than investing. Day trading examines intraday earnings that can be gained from swift price swings, both large and tiny, whereas investing looks at placing money into the stock market with a long-term strategy. Day trading can therefore experience exhilarating highs and heartbreaking lows. It should therefore not be surprising that day trading can be addictive. There is a small line between becoming a professional day trader and supporting an addiction, even if it requires a great deal of skill, focus, time, energy, research, and discipline.

What Makes Day Trading Compulsive?

The same biological factor that makes gambling addicting also applies to day trading. The brain releases “feel good” neurochemicals like dopamine and serotonin when a day trader makes a profit or even just feels excited about the possibility of making a profit. Over time, the brain gets dependent on this kind of stimulus to elicit pleasure because it activates the reward system in the brain. The desire to trade financial instruments for thrills, elation and well-being gets conditioned in the brain. It can take months or even years to repair the brain damage that has been done.

A person can become addicted to trading due to psychological as well as hereditary aspects. For instance, unresolved mental health issues or a family history of gambling may increase someone’s chance of being addicted. There are a variety of other reasons that might cause day trading to develop from a hobby or a career into an addiction, in addition to the brain, heredity, or co-occurring mental health conditions.

  • The legitimacy and viability of stock trading as a source of income may not be questioned by family members who are close to the trader.
  • Day trading is now simpler and more accessible than ever thanks to the growth of the internet and online trading platforms.
  • Even though trades aren’t always profitable, they also don’t always have unfavorable effects. This phenomenon referred to as “partial reinforcement,” causes traders to come back to the market even after a run of bad luck.
  • The majority of day traders experience what is referred to as the “illusion of control” since they think they have done their homework and have a foolproof technique.
  • Even when earnings and losses are of equal worth, day traders are more sensitive to and emotionally attached to their losses. Because of “loss aversion,” sometimes known as “chasing a loss,” they become obsessed with recovering losses.
  • Day traders experience “availability heuristic” problems. This indicates that they overestimate the likelihood of generating a profit on their transactions, either as a result of their track record of profitable trading or even as a result of observing the profitable trades of others.

What Are the Top Ten Symptoms of Day Trading Addiction?

  • If you discover that you are taking bigger risks without much planning, or if you need to place bigger bets to feel satisfied or excited.

What Are the Top Ten Symptoms of Day Trading Addiction?

  • If you have a compulsive need to continually monitor the market or get fascinated with studying and trading stocks.
  • If you stop enjoying the social and recreational activities that you used to enjoy at the expense of trade.
  • If you frequently trade to get a surge of excitement or to enjoy yourself.
  • If you’ve tried unsuccessfully to cut back on the amount of time you spend trading and engaging in activities linked to trading, or if you’ve tried unsuccessfully to take a break or refrain from engaging in activities associated with trading.
  • If you indulge in obsessive trading or have strong urges and cravings to do things linked to trading.
  • If you discover yourself exhibiting undesirable and unhealthy mental health symptoms, particularly while not trading, such as stress, anxiety, depression, irritability, or other.
  • If you discover that you must conceal or lie about your trade from your loved ones.
  • If to conduct trades, you must steal, take loans, sell assets, or utilize the money that should be used for essentials or paying debts.
  • if you keep trading despite risks to your relationships, relationships with others, and your physical and emotional health.

What Must I Do If I Am Addicted to Day Trading?

Depending on the person and their relationship with day trading, they might be able to learn to have a positive, balanced relationship with it, or they might need to completely remove it from their lives. In either scenario, significant lifestyle adjustments will be necessary, and in certain circumstances, support from a professional may be needed.

What Must I Do If I Am Addicted to Day Trading?

There are several doable practical steps one may take to assist stop a trading addiction, such as uninstalling, blocking, or taking away trading-related gadgets, apps, and websites. In the early stages of recovery, one may decide to have their finances transferred to a loved one’s bank account or monitored by a trusted family member. Finding alternative sources of enjoyment will also be crucial, such as taking up a new hobby or resuming enjoyable social or leisure activities from the past. Additionally, this will lessen the boredom and loneliness that frequently lead to relapses. Be careful to eliminate triggers by banning trading-related social media content and avoiding financial media on radio, TV, and print. Additionally, find ways to take care of yourself by concentrating on your diet, exercise, hygiene, sleep, and relaxation through activities like reading or meditation.

Day trading has a high rate of relapse because of the potential disruption of the brain’s reward system, harm to the prefrontal cortex impulse control circuits, disturbance of neurally embedded associations and memories, and disruption of the brain’s reward system. The desire to trade can be sparked by tiny factors that might not even register in the conscious mind. As a result, an addiction expert may be required for professional assistance.

To help people reduce cravings, manage triggers, and adopt a better lifestyle, addiction specialists, such as addiction psychiatrists, addiction therapists, or other similar mental health practitioners, can employ a range of psychotherapeutic techniques. Motivational interviewing, for instance, can be used to assist people to comprehend why their connection with trading is troublesome. Trading-related beliefs, feelings, and behaviors are frequently challenged and changed with the aid of cognitive-behavioral therapy. Treatment options for issues like ADHD, anxiety, and depression that frequently co-occur with gambling include antidepressants and mood stabilizers.

Another popular method of treating day-trading addiction is group therapy. Like-minded people can develop a sense of universality and realize they are not alone in their beliefs, feelings, or actions through group therapy. Group therapy is particularly effective at easing the guilt and humiliation that may be connected to a trading addiction. Group members can support one another meaningfully both by giving and receiving support. The same is true for mutual aid organizations like Gamblers Anonymous, SMART Recovery, and Refuge Recovery.

Please contact our unlisted private concierge sober coach Manhattan, recovery coach Manhattan, sober companion Manhattan, Manhattan addiction therapy services, and/or our Manhattan teletherapy services (online therapy/virtual therapy), as well as our Manhattan hypnosis services in New York City, for more information on NYC addiction treatment and to find the best addiction counselor, or for general therapy and mental health, or to inquire about Family Addiction Specialist’s private concierge

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About the Author: Evelyn

Evelyn is a content writer who has written hundreds of articles about business strategy and operations, with a focus on finance. She also published articles on payroll, small business funding, and content marketing. Evelyn also writes about improving company culture, optimizing business social media pages, and choosing appropriate organizational structures for small businesses.

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