How to Overcome Trading Addiction

Among the many emotional disorders that can negatively impact investing activities, trading addiction stands out. In reality, we should be talking about addiction, even though the association between this pathology and trading is obviously not recognized by the WHO and can only be made approximately, in the absence of scientific evidence on the matter. Regardless of official ethics, addiction is a fairly widespread problem among professional traders. Beginners, who may have been trading for a short time, generally have not yet had the time to develop it, nor to deal with those factors that, in predisposed individuals, can trigger it. Trading addiction can be defined as the tendency to trade compulsively, to the point of compromising one's social space and engaging in behaviors that are not at all helpful in terms of growth and earnings. Those who are addicted to trading, and perhaps dependent on it, simply cannot stop, cannot unplug, resting only when their body and mind force them to. This description obviously only applies to the most severe cases. However, in any case, those who are addicted to trading experience a certain emotional tension when, due to commitments or any other reason, they are not trading. A kind of withdrawal, in short, with all the symptoms that characterize this condition. In this article, we will describe the effects of trading addiction, reflect on the causes that can trigger it, and propose some practical solutions.

Where does trading addiction come from

It is difficult to identify specific causes that can lead a trader to develop a trading addiction. This is also because, unlike other activities, chemistry plays a minimal role even in the most predisposed individuals. For example, addiction to alcohol and drugs can be explained scientifically. With trading addiction, it is much more difficult. From this point of view, addiction can be compared to addiction to "activities", such as addiction to video games and smartphones, whose scientific value is still the subject of some debate today. In light of this evidence, we can, and considering the typical dynamics of trading, we move on to some potentially triggering factors. Fun. Some people trade exclusively for money or because, being gifted, they manage to make money. Others also derive enjoyment from it. It is obvious that experiencing pleasure in carrying out an activity is the conditio sine qua non for developing any form of addiction, especially if it is not related to chemistry. This happens, for example, with video games, and it also happens with trading. Identification. If the fun factor is almost non-specific, i.e., it does not directly cause addiction but is only a basic condition for it, the discourse is different for the identification process. When a trader identifies with the trading activity, i.e., links part of their self-esteem to the performance of their trades, a vicious circle is established that easily leads to addiction. In that case, the trader feels the need to invest in order to find confirmation. Sensitivity. Some traders are sensitive to certain emotions, that is, they experience them more frequently and on the basis of less powerful stimuli. The worst emotion in this case is the desire for revenge, which arises after a trade has gone wrong. Also in this case, the trader has an existential need to trade, and a vicious circle is established: they lose, they trade just to redeem themselves and therefore even when it is not necessary, they lose again, and so on.

The effects of trading addiction

How does an individual affected by trading addiction behave? Here are some of the most common attitudes. They do not distinguish between the various phases of trading. Any trading activity should be divided into three distinct moments: there is a time for analyzing, a time for investing, and a time for standing still. Well, addicted traders experience this boundary as extremely blurred, such is the desire to trade. This has effects, in addition to daily life, also on the effectiveness of the investment action, especially because there is a tendency to devalue the analytical phase. They are in a hurry. Any individual addicted to something, when in contact with the object of their addiction, struggles to show balance and sobriety. When, for example, playing video games, this has no consequences. It's a different story if you are trading. A hasty approach, which therefore does not give the right space to reflection, analysis, and consideration, can cause great damage from an economic point of view. They reduce their social life. It is a characteristic feature of every addiction. The addicted person lives only for the desired object. They neglect loved ones, friends, other activities that have always given them pleasure. In short, they isolate themselves. This also and especially applies to trading addiction.

How to treat trading addiction

If the addiction has reached a critical level, as a pathology (even if trading addiction is not recognized by the WHO), therapeutic intervention is necessary. In any case, it is possible to adopt some measures that, if not able to solve it, at least limit its effects. Unplug for a while. It's the best solution. This way, you recover a more normal condition of existence and get out of the habit of frenzied trading. However, if the problem is serious, this can be a double-edged sword, as it can lead to the classic symptoms of withdrawal. Reduce the frequency of trading. If the problem is serious, and therefore a radical interruption of the activity would create more harm than good, it is best to proceed gradually, i.e., start by simply reducing the frequency. Force yourself to do other things as well. At the very least, resuming the normal activities of a "normal" person can be useful in reducing isolation. In the best-case scenario, it helps to restore the link between the addicted individual and their past life, the one they lived when there was no addiction yet.