Stock market trading, particularly intraday and derivatives trading, has gained immense traction over the last few years in India. A disciplined investment approach has transformed into an addiction for some. Traders are addicted because of the invention involving easy-to-use trading apps and their desire to make quick money
What Makes Trading Addictive?
The addiction to trading is a result of the mental high from winning and FOMO. Every single trade is full of thrills like gambling. The availability of real-time updates on various platforms creates an urge to stick to the screen to score gains or recover losses. Researchers studying the phenomenon of compulsive trading have noticed parallels with gambling.
The Consequences of Trading Addiction
Financial Losses: Many traders, lured by high leverage, exhaust their savings or even take on debt.
Mental Health Issues: Anxiety, stress, and depression are common with people struggling with trading addiction.
Strained Relationships: Excessive time spent on trading disrupts personal and professional relationships.
How to Tackle Trading Addiction
Set Boundaries: Fixed specific hours for trading and avoid monitoring markets whole session.
Educate Yourself: Understand the risks of speculative trading and invest only what you can afford to lose.
Seek Professional Help: If trading addiction persists, consult an expert for your trading.
A Call for Awareness
Trading is a double-edged sword. While it can be a powerful tool for wealth creation, unchecked trading habits can lead to financial ruin and mental distress. Regulators, educators, and mental health professionals must collaborate to spread awareness and ensure a healthier approach to investing.
