WSJ on Stocks, Crypto Trading + Gambling Addiction trend
Clinical Review by:
Published:
Dec 25, 2024
,
04:04 p.m.
ET
When many think of gambling addiction, the blackjack tables or slot machines of Las Vegas may be the first images that come to mind. But the reality of gambling addiction nowadays is that unhealthy behaviors surrounding betting have extended far beyond traditional games and now includes hobbies that used to be looked at as lucrative opportunities and even some people's main source of income.
“Day trading” of stocks and cryptocurrency has skyrocketed in recent years, and some of those who once casually engaged are finding themselves in significant debt with an unmanageable addiction. The Wall Street Journal recently published an article chronicling the downfall of those who experienced the dark side of day trading and how this trend is becoming a larger problem.
Highlights from Wall Street Journal article about day trading and gambling addiction
The article from the Wall Street Journal (WSJ) highlights the addictive nature and devastating aftermath of stock, crypto and options day trading. Gamblers Anonymous (GA) meetings are now being filled with those who have become addicted to day trading and have experienced thousands in losses, borrowing more than they can repay and trading away more than they can afford to. The article speaks to the demographic of those suffering from day trading addiction, with meetings being filled with men in their mid twenties to forties who use brokerage apps like Robinhood and Webull to place a staggering amount of trades that become riskier over time.
The article explores how and why crypto, stock and options trading have become such an issue when in previous years it was not seen as so. It was found that during the COVID-19 pandemic, many of those who are now addicted to day trading started becoming more interested in this type of investing throughout the lockdown period. Since 2019, other types of viral trading sensations that have had notable big returns for some, such as meme stocks and coins, have taken the trading world by storm as well.
Members of various GA meetings shared their experiences with day trading,some stating that they experienced severe mood swings, sleep disturbances, depression and struggles in their personal relationships due to compulsive day trading. A common theme across all of the visited GA meetings was the inability to give up day trading even when the losses were insurmountable and the unbeatable high of when they experienced a win that kept them hooked. This fear of this harmful cycle is what keeps GA members showing up week after week in an attempt to remain abstinent from any gambling activity.
Treatment centers and hotlines have experienced an increase in people seeking out help specific to day trading addiction since 2020. The Pennsylvania gambling hotline received more calls related to crypto and stocks gambling from 2021 to 2024, than the previous six years combined. At a New York treatment center, the clinical director estimated that 10% of patients came in seeking support for day trading specific issues and that prior to 2020 that number was zero. In Virginia, a treatment center revealed they have seen a 25% increase in day trading addiction since 2020 with patients giving up their phones upon entry into the inpatient facility, deleting dozens of stock, sports and financial news apps.
While trading apps like Robinhood claim their platform includes robust safeguards to help customers make informed trading decisions and educational tools to foster responsible investment decisions, they are still not as comprehensive as the warnings on typical gambling and sports betting apps. For those who struggle with compulsive day trading behaviors, Gamban is an app that helps lock individuals out of apps on their phone and now includes Robinhood and Webull as of July 2021. The WSJ poetically shows how the best of intentions, with those thinking they are in control of informed trades, can fall fast into the depths of a crippling addiction with no end in sight.
Warnings signs of a day trading problem
It may be difficult for someone who struggles with day trading to have the awareness of their addiction and are unable to stop these behaviors on their own.
Warning signs that an individual may have a harmful relationship with day trading include:
Impulsive or reckless trading choices
Obsession with trading activity
Avoiding other areas of life in favor of day trading
Isolating from activities outside of trading
Experiencing burnout due to trading
Feelings of hopelessness
Someone who is addicted to day trading may also suffer from severe financial losses and an inability to stop despite them, and/or an increase in the amount of risky investments they make.
Gambling addiction treatment options for stocks & crypto day trading
If you suspect that you or someone you know is struggling with an addiction to stock or crypto day trading, it is important to seek out professional support. There are specialized options for day trading treatment. Mental health professionals who specialize in addiction or behavioral disorders can assess someone's day trading activity to help determine if it’s harmful or not. Individual and group therapy may be beneficial types of support when treating day trading addiction.
In addition to Gamblers Anonymous (GA), individual therapy is available virtually nowadays.
Birches Health offers specialized gambling addiction treatment from the comfort of one's own home. Birches therapists are specially trained to help those with both behavioral diagnoses and addictions. Birches also offers a free assessment to evaluate gambling behaviors, resources for those looking to quit gambling and other support.
You can also simply call 833-483-3838 or email hello@bircheshealth.com to get in touch directly with the Birches team.
