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


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. 

  • It becomes a problem with that first loss, and you can't stop putting in new money for new losses.
  • It becomes a problem if you're lying to your loved ones about not going to the casino or not trading the stock market anymore.
  • It is gambling when you "need to trade everyday" until your equity is all but wiped out or stuck
  • Did you ever borrow to finance your gambling/trading, and lost control and failed to return the money?
  • Have you ever committed, or considered committing, an illegal act to finance gambling?
  • Have you ever sold anything to finance gambling and or stock trading?
  • Justifying 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. "I will not stop because I know the next trade is the right one", but in reality constantly dwindling equity.
  • Overtrading, using T+3 trading to pay only for the "loss" incurred without putting up principal money.
  • Cursing and blaming the broker/brokerage for upholding the financial security measures to avoid drastic losses.
  • Feel compelled to keep upping your bets
  • Did you often gamble until your last dollar is gone?
  • Did you ever gamble longer than you had planned?
  • Feel remorse after gambling
  • After a win did you have a strong urge to return and win more?
  • Gamble with money you need to pay bills
  • Were you reluctant to use "gambling/trading money" for normal expenditures?
  • Did gambling make you careless of the welfare of yourself or your family?
  • Did gambling cause you to have difficulty sleeping?

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.

  • Winning phase – The winning phase often starts with a big win, leading to excitement and a positive view of gambling. Problem gamblers believe they have a special talent for gambling and that the winning will continue. They begin spending greater amounts of time and money on gambling.
  • Losing phase Problem gamblers become more and more preoccupied with gambling. They start to gamble alone, borrow money, skip work, lie to family and friends, and default on debts. They also begin to "chase" their losses: gambling in order to win back money that was lost.
  • Desperation phaseProblem gamblers lose all control over their gambling. They feel ashamed and guilty after gambling, but they can’t stop. They may cheat or steal to finance their addiction. The consequences of compulsive gambling catch up with them: they may lose their jobs, get divorced, or get arrested.
  • Hopeless phase In the hopeless phase, problem gamblers hit “rock bottom.” They don’t believe that anyone cares or that help is possible. They don’t even care if they live or die. They may abuse drugs and alcohol to numb the pain. Many problem gamblers also consider or attempt suicide.

 

Dealing with gambling cravings

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

  • Do something else. Distract yourself with another activity, such as cleaning your house, going to the gym, or watching TV.
  • Postpone gambling. Tell yourself that you’ll wait five minutes, fifteen minutes, or an hour — however long you think you can hold out. As you wait, the urge to gamble may pass or become weak enough to resist.
  • Give yourself a reality check. Visualize what will happen if you give in to the urge to gamble. Think about how you’ll feel after all your money is gone and you’ve disappointed yourself and your family again.
  • Reach out for support. Call a trusted family member, meet a friend for coffee, or go to a Gamblers Anonymous meeting.

 

 

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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