Investing can be a good way to help secure your financial future, but for some people investing can be addictive, like gambling. There are a few things you can monitor to see if your interest in investing has crossed the line.
Easy Access
Before online brokers were so prevalent it was much more difficult to invest -- you had to go through a brokerage firm who had access to the stock exchange. This process was both more costly and more difficult.
While the advent of online brokerages provides advantages and makes investing easier for a wider range of people, it also leads to addictive investing for some. Once you have an account all it takes is a few clicks of the mouse and you can buy or sell shares from the comfort of your own home. But these trades can add up if they are done frequently and constantly monitoring a variety of investments can be incredibly consuming.
Day Trading
Day trading is a common symptom for those who are addicted to investing. This type of investing requires constant monitoring as the prices of the stocks can fluctuate dramatically over the course of a day. This can be a very addictive challenge. Unfortunately timing the fluctuations can be almost impossible and the cost per transaction can add up quickly.
An Unhealthy Habit
Like other additions an investing addition can be unhealthy, and not just for your pocketbook. Obsession over the performance of investments can cause extreme stress and even emotional trauma. Even if you win occasionally studies have shown that this doesn't offset the stress endured to get those few wins. There is always a strong compulsion to maximize each and every transaction. This can take a toll on your health and your emotional state.
Missing Out On Other Things
An investing addiction can also absorb a large amount of time; time that could be spent doing other fulfilling activities like spending time with family and friends or becoming involved in other healthy activities and projects. In this respect an obsession with investing can cost more than mere money. It can result in lost opportunity and a decreased enjoyment of life.
Investing is common because it is a good way to help build a nest egg, so an addiction to it can sometimes be difficult to diagnose. If you think you or someone you love may have an addition to investing consider the points in this article. Investing can be an important part of building your financial future, but unless it is part of your career, investing shouldn't be the main focus of your day-to-day life.
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