Welcome to the community, and thank you for sharing your story.
It’s completely normal to feel that trading stock options can turn into a form of gambling. Many people start with the intention of making informed investments, but the high risk and potential for quick returns can make it addictive, much like traditional gambling.
I can personally relate to your experience. I used to be heavily involved in trading stock options through the WallStreetBets community on Reddit. What started as an exciting way to make quick money soon spiraled out of control.
I became obsessed with checking the markets, making impulsive trades, and chasing losses. Before I knew it, I had lost $20,000. Thinking I could recover my losses, I took even riskier bets. This led to a devastating spiral where I ended up losing $100,000, including my entire 401(k).
The financial strain was immense, and it took a toll on every aspect of my life. I lost my job due to my constant distraction and stress, and my marriage fell apart under the weight of my addiction.
Hitting rock bottom was incredibly painful, but it was also the wake-up call I needed. In a moment of desperation, I reached out to 1-800-GAMBLER. That call was a turning point for me. They connected me with a local psychologist who specialized in gambling addiction treatment. I received 24 sessions of therapy for free, which were incredibly transformative. The support and guidance I received helped me rebuild my life.
Today, I no longer touch stock trading or options. I’ve shifted to managed robo-investing through Vanguard, which allows me to invest responsibly without the risks of active trading.
Here are some practical steps that helped me break the habit, and I hope they can help you too:
- Acknowledge the Issue: You’ve already taken the crucial first step by recognizing that your trading has become a problem. Acknowledging this is key to making a change.
- Educate Yourself: Understand the differences between gambling and investing. Investing involves careful research, long-term planning, and risk management, while gambling is often about taking high risks for short-term rewards.
- Set Clear Boundaries: Establish strict rules for your trading activities. Limit the amount of money you’re willing to invest, set stop-loss orders, and avoid making impulsive trades. Consider switching to a more conservative investment strategy.
- Use Technology: There are mobile apps designed to help manage and track your habits. Some apps can set geo-boundaries or block access to trading platforms during certain hours to prevent impulsive trading.
- Seek Professional Help: Consider talking to a financial advisor or therapist who specializes in addiction. They can provide personalized guidance and support.
- Focus on Long-Term Goals: Shift your focus from short-term gains to long-term financial health. Create a financial plan that aligns with your long-term goals and stick to it.
- Replace the Habit: Find alternative activities that provide excitement and fulfillment without the financial risk. Hobbies, sports, or learning new skills can be great ways to fill the void left by trading.
Remember, recovery is a journey, and it’s okay to seek help and take it one step at a time. You’re not alone in this, and the community is here to support you. Stay strong, Tom, and keep us updated on your progress.
Best, Jane
By following these steps, you can begin to regain control over your finances and move away from the gambling aspect of stock options trading. And hey, at least you found me! This support group can be helpful for everyone if we make it that way.