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How to know if you’re addicted to gambling and stock market

20 August 2008


Dealing with gambling cravings

First of all, this article is for people who treat the stock market like gambling.  It may also apply to people who gamble on horse racing, casino, and what have you.  It does not, however, apply to stock market trading in general, as it is only gambling depending on the attitude and demeanor of the trader towards trading.  But that article is discussed here in this link

 

Here are the signs and symptoms I've compiled. Some are original and based on experience. 

Another article catered specifically to the trader:

Step1

Note any negative changes in personal relationships. This includes lying and problems occurring on weekends, vacations and family visits that interfere with any activity related to buying and selling in financial markets.

Step2

Watch for large capital risk-taking in the stock market. Typically, a day trader works with a margin, money borrowed from the broker. This gives the trader more capital for trading. One signal of addiction occurs when the trader continues to lose but invests more of the broker's money, disregarding any financial safe houses.

Step3

See if the day trader plays the market like a slot machine. Constant buying and selling while using many too ls. Charts, graphs, level 2 quotes, stock news, streaming quotes and momentum remain good sources for executing a trade, but the appeal of the different colors and constant change stimulates the addiction.

Step4

Notice the highs and lows of the day trader's behavior over trades. Like all gamblers, there's a fluctuation in emotions. A quick money making trade brings the emotional level up while a loss can depress, so the trader constantly seeks the high.

Step5

Observe a preoccupation with the financial markets to the point of obsession. Life for this person revolves around day trading and the pursuit of the next trade. The addicted person lives in isolation at the computer while avoiding other daily matters.

Step6

Monitor borrowing activities relating to family, friends, money from a credit card and weekly paychecks. A problem trader, like a casino gambler, has an addiction that overrides common sense.

Step7
Listen for a false sense of reality or justification for making the next trade. No matter how large the loss, the addicted trader always believes in the success of the next trade.
 
Other articles:

The “four phases” of problem gambling and gambling addiction

People with gambling problems typically go through four phases, progressing from recreational gambling to problem gambling and finally to gambling addiction. Each phase can last from months to years.

 

Dealing with gambling cravings

When you’re feeling the urge to gamble, the following strategies can help:

 

 

Sources:

http://www.helpguide.org/mental/gambling_addiction.htm
http://www.ehow.com/how_2108279_know-day-trader-has-gambling.html
http://findarticles.com/p/articles/mi_m1355/is_25_97/ai_62590956/pg_1
http://www.ehow.com/how_2108279_know-day-trader-has-gambling.html

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1 Comment »

2008-08-27 08:00:55

[...] How to know if you’re addicted to gambling and stock market [...]

 
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