By Dr. Raymond Zakhari, NP
Day trading is a highly enticing endeavor for many. The promise of quick returns, the adrenaline of watching market fluctuations, and the potential for financial independence can be alluring. For some, however, day trading becomes more than just a hobby or profession—it becomes an obsession. Men over 40, like everyone else, are susceptible to the emotional rollercoaster that can come with day trading, and in certain instances, it may exacerbate or even mirror underlying mental health disorders.
1. Gambling Disorder:
- Like the gambler seated for hours at a slot machine, a day trader might become addicted to the process. The highs of winning trades and the lows of losing ones can become a cycle that’s hard to break. If you find yourself trading even when it’s causing financial or personal harm, it’s time to seek help.
The Diagnostic and Statistical Manual of Mental Disorders, Fifth Edition (DSM-5), published by the American Psychiatric Association, outlines the following criteria for diagnosing a gambling disorder:
- Persistent and recurrent problematic gambling behavior leading to clinically significant impairment or distress, as indicated by the individual exhibiting four (or more) of the following in a 12-month period:
- Needs to gamble with increasing amounts of money in order to achieve the desired excitement.
- Is restless or irritable when attempting to cut down or stop gambling.
- Has made repeated unsuccessful efforts to control, cut back, or stop gambling.
- Is often preoccupied with gambling (e.g., having persistent thoughts of reliving past gambling experiences, handicapping or planning the next venture, thinking of ways to get money
with which to gamble). - Often gambles when feeling distressed (e.g., helpless, guilty, anxious, depressed).
- After losing money gambling, often returns another day to get even (“chasing” one’s losses).
- Lies to conceal the extent of involvement with gambling.
- Has jeopardized or lost a significant relationship, job, or educational or career opportunity because of gambling.
- Relies on others to provide money to relieve desperate financial situations caused by gambling.
2. The gambling behavior is not better explained by a manic episode.
Other disorders that may manifest as gambling or day trading include:
Impulse Control Disorders:
Day trading requires split-second decisions. But for some, these decisions aren’t just strategic; they’re compulsive. If you find it challenging to resist the urge to make trades, even when it’s not in your best interest, it might be indicative of a deeper impulse control issue. Medications can help with the following conditions, but in the long term a behavioral approach will be essential to overcome the potentially devastating effects of the status quo. Sometimes medications are used off label to reduce intensity of the symptoms so that effective coping skills can be used.
Substance Use Disorders:
The rush of a successful trade can be likened to the high of a drug or the buzz of alcohol. If you find yourself chasing that “high” through day trading, it’s essential to recognize the parallels with substance abuse and consider whether there’s a deeper problem at hand.
Bipolar Disorder:
In the manic phases of bipolar disorder, individuals may act recklessly and engage in risky financial behaviors. Day trading during these periods can result in significant losses and further emotional distress.
Attention Deficit Hyperactivity Disorder (ADHD):
The fast-paced environment of day trading might seem exciting to someone with ADHD. However, the impulsive nature of this disorder can lead to hasty decisions in the trading world, making it potentially hazardous.
Obsessive-Compulsive Disorder (OCD):
If charts, numbers, and market news are taking over your life and you find yourself checking them incessantly, it might be more than just dedication. Obsessive tendencies related to trading could indicate an underlying OCD issue.
Anxiety Disorders:
Some individuals might use day trading as a way to distract from or cope with their anxiety. However, the unpredictable nature of trading can often increase anxiety, making it a counterproductive coping mechanism.
Depression:
Trading might provide temporary relief from feelings of sadness or hopelessness for those with depression. But the inevitable lows and losses can exacerbate depressive episodes, making it a dangerous outlet for those struggling with their mental health.
The first step to getting help is to identify that you need it and to reach out. Recognizing the overlap between day trading and mental health disorders is the first step. If you or someone you know is showing signs of any of these conditions, it’s crucial to seek professional help. Financial well-being is essential, but mental and emotional health is paramount. Remember, it’s never too late to reach out and take steps towards a healthier and more balanced life. This only works if you are willing to be honest with your therapist.