Could 24/7 Stock Trading Lead to More Addiction?

Key Points: 

• Better Markets warns that around-the-clock stock trading could mirror the same public health fallout seen with gambling in America.

• Day trading, crypto, and options trading already show addictive tendencies, mimicking gambling behavior.

• Uninterrupted access to financial markets could intensify compulsive, dopamine-driven behaviors, especially among retail investors. However, others point to the fact that many investment assets (like cryptocurrencies) are already traded 24/7.

• Unlike gambling platforms, most financial trading apps lack robust user protections, warnings and support mechanisms.

• Birches Health offers evidence-based treatment specifically tailored to individuals struggling with day trading addiction and related behavioral health challenges.

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Soon after the Supreme Court’s decision to overturn the federal ban on sports betting in 2018, sports betting platforms went mobile, becoming accessible 24/7, and thousands of Americans soon found themselves hooked. A new report by the non-partisan financial organization Better Markets draws a striking and urgent comparison to day trading, warning that a similar type of public health disaster could unfold again – this time in the financial world – if the push for an always-on stock market is successful. 

This report highlights the urgent risks associated with proposals to expand stock market trading hours to a 24/7 model. This change, being pushed by major exchanges like NYSE, via platforms like Blue Ocean Technologies, would allow retail investors to buy and sell stocks any time of day or night, mimicking the instant access and endless availability of gambling apps.

The report argues that extending trading hours may significantly increase compulsive, speculative trading among everyday investors, especially retail ones. And there’s already evidence that this is more than just a possibility. 

Here, we’ll explore how and why day trading, crypto and stock speculation can become addictive, the specific risks tied to 24/7 stock trading, whether stock trading can be classified as gambling and how specialized support is available for individuals caught in the cycle.

Can Day Trading, crypto and playing the stock market be addictive?

At first glance, investing and gambling may appear worlds apart. One is framed as wealth-building; the other, entertainment. But at the psychological level, day trading, cryptocurrency speculation and options trading all bear striking similarities to gambling.

Day trading involves frequent buying and selling of financial instruments within the same day or even within the same hour, with a goal of profiting from small price movements. While some day traders apply technical skill and analysis, many find themselves glued to screens for hours, and are driven by the thrill of quick wins, the fear of missing out, and the compulsive desire to make up for losses, very similar to the concept of “chasing losses” in gambling. 

These behaviors are classic hallmarks of addiction, which is not surprising considering day trading taps into the same dopamine reward system seen with gambling. The anticipation of a big win, followed by rapid feedback (a gain or a loss), creates a powerful emotional cycle. This cycle, especially when reinforced through high-frequency trades and app-based notifications, can become very difficult for many to break without intervention.

Crypto trading presents a similar picture. Patients in specialized treatment centers report obsessively researching, tracking market movements and making speculative bets on price swings. The 24/7 nature of the crypto markets only intensifies this dynamic. Some residential clinics have even developed specialty inpatient programs just to treat cryptocurrency addiction.

Options trading, too, shares gambling’s DNA. Both involve wagering on uncertain outcomes. With options, investors bet on the future direction of stocks or indices. It’s easy to see how the speculative nature and high stakes of this environment could lead to compulsive, even destructive, behaviors.

Potential dangers of around-the-clock, 24/7 stock market trading

Giving traders unlimited access to financial markets could unleash a new epidemic of behavioral addiction, particularly among younger and less-experienced investors. Blue Ocean Technologies has been facilitating after-hours trades for years, and they now process around 40 million trades per night, with projections to reach over a billion.

Better Markets’ report outlines multiple reasons why this development could be harmful:

1. Addiction and Other Impacts on Behavioral Health:
Around-the-clock trading makes it easier for compulsive behavior to flourish. Retail traders no longer have forced breaks (like weekends or overnight market closures), which previously provided natural pauses and opportunities for reflection. This is especially concerning considering facilities like the Safe Foundation in New York City report that roughly 10% of their patients now seek help for trading-related addictions – virtually nonexistent before 2020. Meanwhile, Williamsville Wellness has seen a 25% increase in financial-market addiction cases.

2. Poorer Investment Outcomes:
Academic studies cited in the report show that more access to trading actually decreases investor performance. A joint Stanford and University of Washington study found that reducing trading hours actually improved annual net gains by 3%. Less time to trade leads to more deliberate decisions and less speculative action.

3. Financial Exploitation:
Institutional firms are better equipped to capitalize on low-liquidity, overnight trading windows. By contrast, retail traders may unknowingly make trades at worse prices, especially if they don’t understand spread dynamics. Bloomberg found that after-hours trades had spreads over 30 basis points in 75% of cases, compared to just 16.6% during regular hours.

4. Lack of Consumer Protections:
Gambling platforms somehow tend to have stronger consumer protections than financial brokerages. The National Council on Problem Gambling has noted that the financial industry largely ignores the addictive potential of trading apps. 

Is the trading of stocks, options or crypto actually a form of gambling? 

While not every investor approaches the market like a casino, from a behavioral and neurobiological perspective, the line between trading and gambling is thin. In fact, platforms like Robinhood and Webull are now blocked by Gamban, an app designed to prevent access to gambling sites. That alone is a telling sign. 

Retail investors using these platforms can seek dopamine-driven instant feedback. With each win or loss, their brain chemistry becomes more entwined with the app. This feedback loop mimics the neurochemical impact of playing a slot machine or placing a bet on sports.

Day Trading addiction treatment

Birches Health understands the unique toll that addiction to trading can take on an individual’s life. Unlike traditional gambling, day trading is often cloaked in the language of sound investing, self-improvement, wealth building and personal finance. 

Fortunately, Birches has a dedicated Day Trading Addiction Treatment program, designed specifically for individuals who struggle with compulsive trading, whether in stocks, options, or cryptocurrencies.

With Birches Health, you’ll receive:

• Specialized treatment from the comfort of your home

• 24/7 access to a care team

• An evidence-based program with measurable clinical outcomes

• Counseling with specialists in day trading addiction

To get started with Birches Health, you can:

• Click to book an appointment 

• Call 833-483-3838

• Email help@bircheshealth.com