Responsible Trading - Are there any laws on trading addiction

[slaman29]

Hi everyone,

If anybody knows me, I frequently equate what people call 'trading' as actually them gambling. This doesn't mean I think trading=gambling, it just means that I think 99% of people who identify as traders are actually showing patterns of addiction. Chasing losses, depositing more than they can afford to lose, spending hours and hours on computer etc.

In gambling, there are laws that require casinos to check users for gambling addiction and to limit them, block them. Even there are self-exclusion programs.

But I don't know any such thing in trading. Never seen an exchange limit me, or other users. Never seen a platform advertise self-exclusion.

People commit suicide trading on Wall Street, losing life savings, double mortgage their houses, steal family money, borrow from loan sharks. It is literally what addicted gamblers do in Vegas.

Are there any laws for trading addiction? Should there be?

[Oshosondy]

What I know is rehabilitation centers for addicted traders which I think we have discussed before on this forum. Aside rehabilitation centers, I do not think all what you have asked is existing in trading. But in gambling those are not effective even as they exist. What that is effective in gambling is when someone have it in mind that he wants to quit addiction. A gambler can go for self-exclusion on a gambling site and still register on another gambling site and continue gambling. But if it comes from his mind, he will not want to do that.

Trading is worse than gambling if it is addiction but they are both very dangerous in a way they do not need comparison. I said trading addiction is worse because trading is not fun and you can be watching the market while losing than watching the market while winning. When sleeping time comes at night, you will not want to gamble again but if you have a position open in trading, that may not let you sleep but be watching the market while losing. This is very dangerous as it can affect other activities than gambling.

But the best you can get if you are losing is to not trade again just as you suppose to quit gambling if it is gambling.

[Barikui1]

  Never seen an exchange limit me, or other users. Never seen a platform advertise self-exclusion.

People commit suicide trading on Wall Street, losing life savings, double mortgage their houses, steal family money, borrow from loan sharks. It is literally what addicted gamblers do in Vegas.

Are there any laws for trading addiction? Should there be?

No, I don't actually think their is any law out there that prevents traders from getting addicted because you can't, it will definitely humbles you, the losses in trading mess with your emotions, so you can't get addicted to it like in the case of gambling, their are some kind of losses you might experience in trading, you will even be scared of it, I mean you will be scared of trading,  because the way trading is being structured, and how the market moves, it always try to mess with your emotions, that's why if the market want to move from 5 to 10, it first of all moves from 5 to 2 to test your emotions if you trust in your analysis, then it will later reverse and move to 10 which was his initial destination.

That's why is very much important to trade with an amount you can afford to lose, so that your emotions can be in check, besides their are several warming in almost all exchange, mostly when you want to trade futures, they will pop up a message that it's very risky, and it might lead to significant losses, so it's for you to agree or disagree.

[Alphakilo]

To the best of my knowledge there are no known laws in trading similar to gambling like this self exclusion. In as much as they look similar, they are different in so many ways. While gambling addiction has been classified and has a standard treatment procedure, trading addiction is yet to be classified. Most of the clinics handling gambling addiction also have to have trading addiction as treat both cases as one.

There are no laws on trading addiction yet because unlike gambling, we don't have many people getting in trading. You require specialized knowledge to trade unlike gambling where just about anyone and at any age can do it. There are more gambling regulations/laws than trading.

[Helena Yu]

No, there are no laws about trading addiction.

I just tried to ask live support from Binance, they said they didn't have it, but they offer to check my account while I don't have Binance account lol. Then I try to ask on Bybit, they boldly said they didn't have it and they're not responsible with the loss.

Of course centralized exchanges need to have this kind laws because margin trading with high leverages is nothing different to gambling

[Salahmu]

Hi everyone,.

In gambling, there are laws that require casinos to check users for gambling addiction and to limit them, block them. Even there are self-exclusion programs.

But I don't know any such thing in trading. Never seen an exchange limit me, or other users. Never seen a platform advertise self-exclusion.

People commit suicide trading on Wall Street, losing life savings, double mortgage their houses, steal family money, borrow from loan sharks. It is literally what addicted gamblers do in Vegas.

Are there any laws for trading addiction? Should there be?

There is no law in regards to that in trading, perhaps that's because in as much as both gambling and trading has a significant similarities but the amount they normally use in both sides are different because exchange has already no that is not only the individual who are trading but also some of the company who has an experience people on the field and definitely they will be trading with a lot of money, so actually in as much as trading is not my thing but I don't think there is any need for law because they have a kind of reputable principles and there is no measure at which an exchange will no if someone is an addict in trading.

[maydna]

The exchanges only limit you from using all of their features when you are not yet doing KYC. But when you do that, you can use all of their feature and start trading. You are the law who can control the addiction in trading so you must responsible in trading.

Responsible will not just in gambling and trading but also in other things. So when you can responsible with all things, you will be fine. If people can also responsible in trading, they will not lost their money because they know that can makes them lose especially if they don't have skill in trading.

[dzungmobile]

In gambling, there are laws that require casinos to check users for gambling addiction and to limit them, block them. Even there are self-exclusion programs.

But I don't know any such thing in trading. Never seen an exchange limit me, or other users. Never seen a platform advertise self-exclusion.

People commit suicide trading on Wall Street, losing life savings, double mortgage their houses, steal family money, borrow from loan sharks. It is literally what addicted gamblers do in Vegas.

Are there any laws for trading addiction? Should there be?

Trading is less risky than gambling especially if you only trade with Spot, but risk is higher if you use leverage or futures trading.

Addiction in trading is real but I don't think any solution to prevent it. Firstly I don't know anything like this in stock market. Second in cryptocurrency market, it's 24/7, more active than stock market, and traders have to control themselves, there is no break time like weekends, hours of day for them like in stocks market.

Prevent addiction or cure addiction is so difficult and it is related more to mentallity and your willingness to do that. If you are not ready, any tool will be useless.

[Natalim]

Unfortunately, there are no specific laws regarding trading addiction. Those exchanges are clearly not accountable of traders losses and the addiction they fall onto. They are more focused on their future profits than the welfare of their traders.

That's why being a responsible and disciplined trader are very crucial. Never enter trading for the sake of greed for money, but trade only when you have developed your skills and strategies that would increase trading success and profitability.

[SamReomo]

Are there any laws for trading addiction? Should there be?

Trading is a profession for some people and that's why they give proper time to it. Many of such traders aren't profitable ones but they keep learning new trading rules after each loss.

I would say that there's nothing bad about the ones who give 8 hours to trading because such people can learn many areas of trading.

Gambling is something that's highly dependent on someone's luck but in trading luck doesn't plays that much important role.

[justdimin]

This doesn't mean I think trading=gambling, it just means that I think 99% of people who identify as traders are actually showing patterns of addiction.

Your trading will turn into gambling when you are not properly prepared. Because, trading and gambling are having very thin difference which mean you may approach trading in exact manner how you do gambling. So, getting addicted toward trading is very much possible. So, I agree that there should be enough restrictions and awareness against addictive nature of trading as well.

In many countries, their regulatory authorities (like SEC in USA) are taking numerous steps toward derivative markets as most people do lose there. But, unless otherwise, people understand the core problem, no difference we could observe in near future.

[Rockstarguy]

But I don't know any such thing in trading. Never seen an exchange limit me, or other users. Never seen a platform advertise self-exclusion.

People commit suicide trading on Wall Street, losing life savings, double mortgage their houses, steal family money, borrow from loan sharks. It is literally what addicted gamblers do in Vegas.

Are there any laws for trading addiction? Should there be?

The crypto market is a market that traders can use the way they like to trade. Their is no restrictions or limit on how people must trade in the market. The reason why crypto market won't have any restrictions on traders who trade so much and go after their loses is because it is decentralized which means it is left for traders to have understanding that one needs to trade with only the amount that you can afford to lose.

Their are principles in trading which trader needs to follow which can guild for people not to fall into addiction. In trading when you try to recover loses it can just be a trap to lose more money.

[Faisal2202]

Hi everyone,

If anybody knows me, I frequently equate what people call 'trading' as actually them gambling. This doesn't mean I think trading=gambling, it just means that I think 99% of people who identify as traders are actually showing patterns of addiction. Chasing losses, depositing more than they can afford to lose, spending hours and hours on computer etc.

In gambling, there are laws that require casinos to check users for gambling addiction and to limit them, block them. Even there are self-exclusion programs.

But I don't know any such thing in trading. Never seen an exchange limit me, or other users. Never seen a platform advertise self-exclusion.

People commit suicide trading on Wall Street, losing life savings, double mortgage their houses, steal family money, borrow from loan sharks. It is literally what addicted gamblers do in Vegas.

Are there any laws for trading addiction? Should there be?

This is actually a good point, never thought of it I think there is none I don't know for sure as till now never heard of one and TBH I even never heard about such a thing in gambling, maybe because I don't gamble or too much involve in gambling. Comparing wallet street traders with crypto traders is totally different, in my opinion.

As I don't have experience of wallet street too but the environment is very bad and stressful, but in crypto trading, the environment is cool if it's not bear cycle. Anyone can make a profit in a bull season like now, and in crypto the ratio of stress cases or suicides is too low even though I don't come to remember any case that happened due to a loss in crypto.

Such laws should be in place even in crypto trading even if there are cases or not. But trading is not like gambling, as in gambling people totally relying on their luck I mean they can even win big or lose it all unlike trading with little knowledge they can still make profit so trading in crypto is not that stressful as it is gambling or trading in wall streets.

[tvplus006]

...People commit suicide trading on Wall Street, losing life savings, double mortgage their houses, steal family money, borrow from loan sharks. It is literally what addicted gamblers do in Vegas.
Are there any laws for trading addiction? Should there be?

If a person is a gambler by nature, then there will not be much difference in how he plays in a casino or trades cryptocurrency. And if a trader adheres to the risk management strategy, then he will adhere to it in the casino. Accordingly, if a player is used to playing All-in at a casino, then he will trade with a large leverage using the entire deposit.

[EL MOHA]

If anybody knows me, I frequently equate what people call 'trading' as actually them gambling. This doesn't mean I think trading=gambling, it just means that I think 99% of people who identify as traders are actually showing patterns of addiction. Chasing losses, depositing more than they can afford to lose, spending hours and hours on computer etc.

In gambling, there are laws that require casinos to check users for gambling addiction and to limit them, block them. Even there are self-exclusion programs.

But I don't know any such thing in trading. Never seen an exchange limit me, or other users. Never seen a platform advertise self-exclusion.

People commit suicide trading on Wall Street, losing life savings, double mortgage their houses, steal family money, borrow from loan sharks. It is literally what addicted gamblers do in Vegas.

Are there any laws for trading addiction? Should there be?

In as much as I wouldn’t deny the fact that most of these traders actually treat trading as gambling but will say there is difference in the trading, someone trading on spot and someone trading futures are totally different. If you say spot trading is gambling then we can just categorically say all form of business or investments are gambling. Spot trading or even all trading requires you to actually DYOR which gives you and edge on what you invest in. As for even futures those that actually use leverages can be accustomed to be gamblers and even these sets they are people who control their losses which is different from gambling.

As for addiction control I don’t see the banning of users as a way to stop it because still these gamblers will definitely find a way to go round it by using another exchange or gambling platform. Rather sanitization program of how harmful gambling can be is much better and clearly you will see some exchanges warning of the danger of trading pairs which are volatile.

[South Park]

Hi everyone,

If anybody knows me, I frequently equate what people call 'trading' as actually them gambling. This doesn't mean I think trading=gambling, it just means that I think 99% of people who identify as traders are actually showing patterns of addiction. Chasing losses, depositing more than they can afford to lose, spending hours and hours on computer etc.

In gambling, there are laws that require casinos to check users for gambling addiction and to limit them, block them. Even there are self-exclusion programs.

But I don't know any such thing in trading. Never seen an exchange limit me, or other users. Never seen a platform advertise self-exclusion.

People commit suicide trading on Wall Street, losing life savings, double mortgage their houses, steal family money, borrow from loan sharks. It is literally what addicted gamblers do in Vegas.

Are there any laws for trading addiction? Should there be?

I have never seen exchanges to be subjected to the same regulations casinos have to follow through, despite the fact that we know the majority of those calling themselves traders are in fact gamblers, and if anything they lose way more money than someone addicted to gambling, but this is just one of those addictions that society does not really want to look too closely, similar to what we see with social media addiction, which in my opinion destroys many more lives than gambling addiction.

[Japinat]

The exchanges only limit you from using all of their features when you are not yet doing KYC. But when you do that, you can use all of their feature and start trading. You are the law who can control the addiction in trading so you must responsible in trading.

Responsible will not just in gambling and trading but also in other things. So when you can responsible with all things, you will be fine. If people can also responsible in trading, they will not lost their money because they know that can makes them lose especially if they don't have skill in trading.

Your money, your rules, not only in gambling but also in trading. If you cannot manage your money wisely, either in trading or gambling, losses can be inevitable. That’s why you can’t be in trading if you are not capable to trade, without knowledge and skills in trading because that will lead you being an irresponsible trader. Exchanges will not imply certain rules not to get addicted, that’s why you have to set your own rules and limitations so you can trade your money smartly and effectively, and won’t end up getting addicted in trading.

[maydna]

~snip~

Your money, your rules, not only in gambling but also in trading. If you cannot manage your money wisely, either in trading or gambling, losses can be inevitable. That’s why you can’t be in trading if you are not capable to trade, without knowledge and skills in trading because that will lead you being an irresponsible trader. Exchanges will not imply certain rules not to get addicted, that’s why you have to set your own rules and limitations so you can trade your money smartly and effectively, and won’t end up getting addicted in trading.

Yes, agree with that. We control our money whether we will use for gambling or trading. Whatever we will do with our money, we must responsible so we will not regret when we spend for trading, gambling, or other things. If we can not manage the money wisely, we will see that will be gone quickly and we can not get it back easily from trading or gambling especially if we don't have skills that can help us to recover the loss. Without knowledge, we will only lose so we must improve our skills no matter if that is not easy for us. We just need to take care of ourselves from the addiction, whether that is in gambling or trading. Yes, the limitation will be our rules so we must stick to our limit.

[Pandu Geddon]

Are there any laws for trading addiction? Should there be?

I'm not sure there is a law that will regulate addicted traders. In his case, this is certainly identical to addicted gamblers. This addiction can attack traders or other behaviors such as playing online games.
All things that are addicted will require action to resolve the problems caused by addiction, likewise, traders can spend all their wealth to trade.
Treating trading like gambling or even a job to make money every day is indeed not suitable. Traders will tend to be ambitious and continue trading to make a profit even in difficult situations. I think if it is like that, traders are not trading with their skills but with their luck.

[slaman29]

Thanks for all the feedback guys, so its more or less as I thought. There are no such laws.

~snip~

Your money, your rules, not only in gambling but also in trading. If you cannot manage your money wisely, either in trading or gambling, losses can be inevitable. That’s why you can’t be in trading if you are not capable to trade, without knowledge and skills in trading because that will lead you being an irresponsible trader. Exchanges will not imply certain rules not to get addicted, that’s why you have to set your own rules and limitations so you can trade your money smartly and effectively, and won’t end up getting addicted in trading.

Yes, agree with that. We control our money whether we will use for gambling or trading. Whatever we will do with our money, we must responsible so we will not regret when we spend for trading, gambling, or other things. If we can not manage the money wisely, we will see that will be gone quickly and we can not get it back easily from trading or gambling especially if we don't have skills that can help us to recover the loss. Without knowledge, we will only lose so we must improve our skills no matter if that is not easy for us. We just need to take care of ourselves from the addiction, whether that is in gambling or trading. Yes, the limitation will be our rules so we must stick to our limit.

I agree in principle, your money, your rules. But you guys kinda lost the point in OP.

Addiction to gambling or trading in this case, as you know is a social issue because there are some people who are prone to addiction problem. Its a medical issue, some of us are wired in such a way we have brains we can't control and addiction pushes people to do extreme things even criminal things.

When an addicted trader chases losses and loses (duh house always wins, exchanges always win) where do they go to look for more money to get their fix? Their salary. Their savings. They lie to banks to get more loans. They lie to wives to steal their savings. Or they just go steal money.

This is not about implying rules not to get addicted but to IDENTIFY addicts and to not encourage them to gamble more on trading. It is legal requirement and medically recognized in gambling. Should be the same for trading is my point.