Day Trading Addiction

 The stock markets of the world have made and lost huge fortunes for many, but there are vastly more who have lost fortunes. Cautionary words of wisdom from the legendary billionaire hedge fund manager investor George Soros,  puts everything into perspective especially when considering the engagement in high risk day trading .

"It's not whether you're right or wrong that's important, but how much money you make when you're right and how much you lose when you're wrong." 

Take note that the words “odds of winning” which is not only appropriate terminology for gambling, but also for the many highly leveraged and highly promoted so called Contract for Difference (CFD) trading Apps.  These platforms allow individuals to trade in Shares, Exchange -Traded Funds (ETF's), Bonds, Themes, Global Currencies (FOREX), Commodities and Indices. It is no coincidence that these platforms by law have to carry warnings to potential users that between 70 & 80% of retail CFD accounts lose money.

Even modest engagement with CFD day trading can produce the same effects as gambling or other stimulants. This is because both come with a potential reward of high income, financial freedom and the dream of exotic homes in paradise, luxury cars and yachts in the Mediterranean etc. With such idyllic dreams comes the frenetic engagement and adrenalin rush that day trading provides. In the roller coaster journey experienced whilst a person is engaged in a high risk position on say a derivative trade , the person holding that position experiences a rush similar to a high, which is caused by the brain producing an opium like substance called dopamine that rewards the brains pleasure center.

When this process and euphoric experience is repeated over and over again our brain forms neural pathways to recognise which activates create the reward. This is exactly how addictions are formed because the brain starts to crave the reward cycle in preference to all other emotions, especially the downs that follow when a loss in incurred.

Some common signs of someone having a day trading addiction problem are : -

  • Obsessing over trading, watching the markets continually throughout the day.
  • Taking increased risk whilst trading without much strategy being employed or to put in place any exit strategies.
  • Making unsuccessful attempts to reduce their trading activities.
  • Concealing or lying about their day trading activities.
  • Losing interest in keeping up friendships or other normal social activities.
  • Taking out new loans, or re-mortgaging properties
  • In extreme cases, resorting to stealing to make up for and cover loses.

It’s worth remembering that not everyone who engages in day trading is going to get addicted. When trading is professionally managed the individual can remain detached whilst trading, without becoming consumed in the activity then that’s fine. This ability can be developed with appropriate training and a circumspect approach, which does not involve the reckless chasing of losses whatever the cost.

Here at Addictions Away, we help you to explore and identify the reasons behind your day trading  addiction and understand more clearly your emotional dependency on it to cope with life’s ups and downs. This will allow us to deliver the most appropriate form of therapy tailored to your unique circumstances.  Throughout your entire journey on the road to recovery our fully qualified and registered therapist will work closely alongside you, thus ensuring the best possible outcome. We offer confidential on-line and in person therapy services regulated by The British Standards Authority, provided at one of our therapy suites located throughout North Wales and Cheshire. To book sessions just click the link below.

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