Learning All About Pathological Trading (A Mental Health Issue)

As with any advanced and risky form of trading investment, it is wise that we have an adequate financial education before we dive deep into the Pathological type of Trading in any financial institution. It is illogical for us to go into an investment we do not understand. No, these are not riskier financial instruments. Making this move can cause you greater harm than you would have expected.

Source: pexels.com

Believe it or not, there was a time in my youth when people around me constantly told me that it was important that I invested in the stock market when I reached the age of 21. But I had known nothing about the stock market crash and what investing in it meant.

Since everyone was talking about it, I got a little curious. So, I spent days looking into the stock market and trading. What was it important, and why did I need to take that risk? Let me tell you about the things I found out. Basically, the trading stock market is a collection of financial markets and exchanges where regular buying, selling, and issuance of shares of publicly-held or publicly traded companies occur. (John, 2020) In a country, there can be more than one venue for stock online trading to occur.

Trading Stock

Now, what is stock trading? Stock trading denotes the buying and selling of shares in a certain enterprise. Owning stocks meant owning a portion of the company. If you own .025% worth of stocks, your interest in the company is .025%. Did you know that companies can buy stocks for as low as a few dollars? Well, the key is to have stocks in a few companies, but do not overdo it.

Source: pexels.com

There has been a study released on whether or not stock trading behavior or excessive trading can be considered a form of day trading addiction that causes stock market anxiety and affects your mental health. In reference to the information taken from the Federal Reserve Board’s Survey of Consumer Finances back in 2013, a family of two in the United States has stocks in public trading companies, direct or indirect. That is 48% of the family of two populations compared to 1995’s forty percent. The study also mentioned that despite in increasing amounts in the foreign financial markets worldwide, the number of traders who have committed suicide is also on the trade increase. The term trading addiction is passed about and not given any day of importance.

Furthermore, the study entitled “Is Pathological Trading an Overlooked Addiction” has concluded that pathological trading or trading addiction leads to a necessary area of mental health research and must be considered a disorder as it is.

This means that if traders are actually taking their own lives over this activity, then going into stock trading and investing in the stock market or financial markets means that you will have to make sure that you are mentally healthy and will not lose interest due to pathological trading. On the other hand, beating depression for bipolar traders is complex and overwhelming, In case you are one of those who are struggling, a mental health professional can assist with your concerns.

Source: pexels.com

Much like everything else in our world, we must put ourselves and our mental health first. Putting ourselves in stressful and desperate financial situations when we are not in a good mental space can cause us a lot more harm than we would want to put ourselves in. Studies have shown that a healthy mental state can also lead to a healthy body, meaning that if we allow our mental state to get worse by the day, then we are also allowing our bodies to decline in health.

Like with anything, it is important that when we go into stocks or trading, we remember that not every day trading is a winning day. There will be days that we lose more than we expect, and there will be days that are harder than the others, which is why we should make sure that going into this trade, we are in the healthiest mental and physical state possible. It is also important that we surround ourselves with people who support us and people who go through the same thing so that when the going gets tough, the tough can get going.

Source: pexels.com

There is a lot more about the stock market, stock trading, and stock exchange. The whole thing is bigger than we actually think. Before you go into it, and before you take that risk, you have to dive deep into research and strategies on what is best to do when going into the business.

Everywhere on the internet, there is something that can help you understand a little more about it, and that takes you a little closer to understanding what you can do to do well in stocks. For example, you could always find a beginner’s guide, or maybe you could find a stock trading for dummies book somewhere out there. In any case, there will always be help where you need it. It does not matter what the help is for, but help is here when you need it.


What Is Compulsive Trading?

What are the four types of trading?

Is pathological trading an overlooked form of addiction?

What are the three types of trading?

Why am I addicted to trading?

What is toxic trading?

What is psychological trading?

When does trading become gambling?

What is the safest type of trading?

Which type of trader is most successful?

What kind of people are traders?

What personality type is best for trading?

What skills do traders need?

What type of trading is best for beginners?

How do I stop my addiction to trading?



John, Y., 2020. Basics Of Stock Market » EQSIS PRO. [online] EQSIS PRO. Available at: <https://www.eqsis.com/pro/basics-of-stock-market-144/> [Accessed 17 October 2020].


Leave a Reply

Your email address will not be published. Required fields are marked *