The Indicator from Planet Money The cautionary tale of a recovering day trading addict
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Jan 28, 2025 Explore the gripping tale of a man's descent into day trading addiction, sparked by initial success and fueled by online influences. Discover how the thrill turned into peril as financial losses mounted, leading to a wake-up call during the pandemic. A neuroeconomist sheds light on the psychological hooks that compare trading to gambling. Follow the journey of recovery and the launch of Project Wellbeing, which aims to foster awareness and create supportive environments for those affected by such compulsions.
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Chris's Day Trading Addiction
- Chris Garver, initially a sensible investor, got drawn into high-risk day trading.
- He accumulated significant debt, hiding it from his wife, while compulsively checking market prices.
Day Trading as Gambling
- Day trading, often facilitated by apps like Robinhood, can be a form of gambling.
- These platforms offer easy access to high-risk, high-reward investments, attracting many users.
Allure of Huge Payoffs
- People are drawn to investments with a small chance of huge payoffs, similar to lottery tickets.
- Brain scans reveal people's fixation on potential large returns, despite low probability.