Another troublesome realm where technology is expanding gambling behavior — The Stock Market.

Using apps to manage your portfolio is nothing new — many banks and firms have used them for years.

However the proliferation of playing options and cryptocurrency, these apps have become miniature slot machines in our pockets. The temptation to make fast money is very strong and gambling addiction experts see similar trends in these apps:

“The online day trader with problems is indistinguishable from the online gambling addict,” said Keith Whyte, the executive director of the National Council on Problem Gambling, pointing to graphics like the iconic green confetti that displays on a user’s phone when a Robinhood trade executes. “A lot of this is directly taken from the user experience of casinos: It encourages immediacy and frequent engagement.” (NBC News, 2021)

The pull of the reddit-investors lore is strong — If I can guess the right stock at the right time, I can make it big! Stories abound of near overnight crypto-millionaires. There is a feeling of exciting Wild West lawlessness, luring people to the promise of instant success.

The problem with these kinds of gains is that they are terribly addicting — and you don’t stay on top for long.

As in Vegas, the house appears to always win.

Is there a ‘safe’ way to do it? Sort of…

1. Set up a discretionary fund to enjoy using every month of a certain allowance (if you have a partner, speak with them about what this number should be).

2. NEVER go over that amount. If you have trouble with this, it is a sign that you are shifting into a lack of control.

3. Set up an accountability partner. Meet with a friend who has the same strategy of a set amount per month. You can discuss how you are both going to use your month that month and share conversations. It converts the activity from lonely stress gambling behavior to a friendship building activity.

Without that built-in safety, the threat of Gambling Addiction behavior on these investment apps is far too risky.

If you or someone you know needs help setting up such a limit or quitting this trend, give me a call.

Email: DrZepeda@FinancialTherapyTexas.com

Phone: 713-291-9553