Responsible Trading - Are there any laws on trading addiction

[mirakal]

Well, I’m not sure if trading sites track user activity to target addiction, because honestly, I don’t think they care how much money or time we spend on them. Maybe I missed it, but I’ve never heard of anyone committing suicide because of trading, unlike gambling.

To me, trading is completely different from gambling. Of course, both involve losses, but trading isn’t that bad. With trading, if we take the time to study the market movements, there’s at least a chance to earn some profit and recover losses, which we can't find in gambling. If we get addicted to gambling, we’ll likely lose everything. But in trading, there’s still a possibility to grow and gain more if we play it smart.

[shield132]

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?

You talk about a very important topic, which is usually under the shadow and no one talks about it. Trading addiction exists and I developed that a few years ago but now I'm doing fine. A few years ago I was actively trading, spending days and nights on trading app but one night, I suddenly fell asleep and my futures position got liquidated and I lost my whole capital. It shocked me so much that I desperately got a huge loan from the bank to get back what I lost. I almost lost the whole money but my luck shined and with a few hundred dollars, I managed to earn thousands of dollars. I earned enough money to pay back my loan but this accident that I almost lost the loaned money made me so scared that I realized I had to work on my mental health instead of thinking about getting back what I lost previously. Luckily, I repaid my loan and then I focused on saving some money from my monthly salary and investing in Bitcoin. This action helps me to successfully earn money from trading without spending days and nights awake because I'm focused on safe assets like Bitcoin, Eth and BNB and I don't do day trading anymore, I am more on the holding side.

Btw one underrated and skipped option is the Stop Loss option. It's better to set the Stop Loss option and keep some capital instead of getting liquidated.

[tvplus006]

...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.

It is unlikely that we will be able to determine such dependence on trading before he loses his deposit and goes in search of money to his relatives and friends. And there will be no way to prevent him from doing this, since there are many decentralized exchanges that do not require any documents to trade on.

[retreat]

I don't think there is a law that regulates trading addiction like responsible gambling regulations that prevent people from getting addicted. Because I think maybe trading is not a game that has a high chance of addiction like a gambling game, so there is no need for the government to regulate it and limit a trader from trading excessively. Moreover, people are more interested in gambling because it offers exciting games and the addictive effect is high, so the government pays more attention to regulations about it to limit someone from getting involved further in gambling and getting addicted to it.

[Dr.Bitcoin_Strange]

There's no law for trading addiction but if there is any, I am not aware about it but what i know so well is that, most of the reputable crypto exchange will always put a help guid on their exchange and will make sure that their customers read it before they start trading and by doing so, they want to make sure that the individual is aware of what they are going into, therefore they will not be responsible for how ever the individual decides to trade.

Take for example, when I first started trading on the binance exchange, they made me to take a test by providing a video I should watch, after watching the short video, they brought up another page which was made up of about five questions which I needed to answer it correctly base on what I watched on the video and the reason for such test was to make sure that am fully aware that am going into a volatile market and they will not be accountable for my lose. I tried to skip the process of watching that video and answering the questions but I was not allowed to trade until I pass those test.

Same thing happened when I started trading with bybit. Bingx made me to agree to their volatility and liquidation terms and policy before I was allowed to place a trade, same with digifinex.  So, in conclusion, most of these exchanges already makes it clear from the start to inform users that trading is not just something they can do without having a proper experience.
If alone the line, a trader gets addicted, they should be taken to a rehabilitation center or seek for advice from people.

People can get addicted to many things if not properly managed but It is a very great and regrettable mistake to become addicted to trading because the person will lose everything to the market.

[crwth]

Laws? I think that would be just for you. A law to prevent you or something. I think it's the person's fault for going the mile to gamble continuously. If that's the case and you know you have a problem, you must seek professional help and do it seriously. I believe that if you are at that point, you are starting to blame other things instead of yourself, which is problematic. It's the person that should take care of themselves.

Relying on other things, like laws stated by a government, would do nothing. If there's a will, there's a way. Limits on trading would be different, but they have some similarities, and I think some of them should be applied to trading as well.

[Catenaccio]

Well, I’m not sure if trading sites track user activity to target addiction, because honestly, I don’t think they care how much money or time we spend on them. Maybe I missed it, but I’ve never heard of anyone committing suicide because of trading, unlike gambling.

You can lose, lose big with trading but it comes with slower progress and is less severe than gambling. Both trading and gambling can be very addictive and possibly can result in unhappy ending like bankruptcy, or suicide. I agree that there are less reports on suicides because of trading and as consequence of gambling.

Etheir trading or gambling or whatever things you do by yourself, do it responsibly!

I think it's the person's fault for going the mile to gamble continuously. If that's the case and you know you have a problem, you must seek professional help and do it seriously. I believe that if you are at that point, you are starting to blame other things instead of yourself, which is problematic. It's the person that should take care of themselves.

With people are are addictive to trading or gambling, the best way after all, if they failed to control themselves many times, is throw away the computer, laptop, and disconnect themselves to internet, and these websites. If they can do it, they can break their addictive habit and can change their lives. It's unrealistic to think that they can succeed to break their addiction by visiting and looking at an exchange website, a gambling website daily.

[el kaka22]

This isn't gambling, if you trade and lose money then you do it all by yourself and it wasn't designed to make you lose neither, look at the market right now for example, it is so easy to make money right now, if you are still making a loss then you are just a bad trader and nobody is responsible for that.

Gambling is more about losing, because there is a house edge and that means you are going to lose no matter what happens, but trading isn't like that and you could win if you know how to trade. This is why there are no laws about trading addiction, to be fair I am not sure if trading could even become an addiction, that doesn't sound that realistic to me, trading never felt like something I can't stop doing like an addiction.

[AmoreJaz]

This isn't gambling, if you trade and lose money then you do it all by yourself and it wasn't designed to make you lose neither, look at the market right now for example, it is so easy to make money right now, if you are still making a loss then you are just a bad trader and nobody is responsible for that.

Gambling is more about losing, because there is a house edge and that means you are going to lose no matter what happens, but trading isn't like that and you could win if you know how to trade. This is why there are no laws about trading addiction, to be fair I am not sure if trading could even become an addiction, that doesn't sound that realistic to me, trading never felt like something I can't stop doing like an addiction.

When you are not ready for trading, you will surely lose. There's no house edge on this market, so the strategies are all on you how you can take advantage of the market. If there will be so-called trading addiction, high likely that you will be on the positive side because you will gain a lot of tricks how to get profits from your trades.

[stomachgrowls]

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?

Even we do pertain or talks about gambling platforms on banning or blocking or limiting their addicted gamblers on which this is really that unlikely thing to happen on which instead on doing up those things then they will really be just that eventually letting those users to play and lose it all. Same goes into those exchange platforms on which there's no way that they will really be stopping into those users or traders who will really be that using up their platform to trade. Actually this kind of problem is really that something in connection with personal approach and decisions be made. People do really need up to assess themselves on the actions that they are taking.

There's no such law that it will really be focusing into the people who had been neither playing or doing trades neither on a casino or exchange platform. You are the ones who had decided to trade and play accordingly. They dont have the control on the money that you are using into on which this is a personal kind of discipline on which you do need to mind of. There's always that tendency that addiction could happen  specially on trading because we do know that when it comes to potential profits then this is something that could give out that kind of opportunity but of course not all will really be able to achieve such situation and thats why on the moment that they do suffer loss then they do keeo on chasing it.

[X-ray]

there isn't any, but I also believe that future trading should have the same law, it should be under category of gambling as well, because with future trading, it's also all about probability, can't really take advantage of TA if slight market shake with high leverage already liquidate you and also, exchanges sometimes do it really bad, they like to liquidate future position at 80% loss which is not fair in my opinion.

I think the laws should be there, to make it fair.

[maydna]

~snip~

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.

But how if that trader can learn many things while he is addicted to trading? You see when we become excited and trying to deeper in something, we all want to know more about that thing and willing to learn more so we can understand what we will do. That could be addicted to that thing but we never realize about that and deny it. If you can IDENTIFY this, you will know that you become addicted.

We know that gambling addiction is too dangerous for someone because no matter if he learns many things related to gambling, he still doesn't have a high chance to win. He cannot recover his losses.

But in trading, there still a chance that he can recover his losses especially if he can see the way to sell the coin in the high price. We know that the price can reverse to the high price. The point is when they can learn many things about trading, he is not gambling because he know how to analyze the market, how to use the indicator and all things.

Only people who can not learn more about trading that will lose more and more.

[Findingnemo]

I don't think casino platforms restricts any user on their own with the reason that they are playing a lot so it might be a sign of an addiction and even if they do there won't be any change at all, they simply choose another one and start from zero. Also there's no way for a casino to determine whether the person is addicted or not cause every has their financial tolerance so one who might spend 1 million on a day without worrying at all and another one might spend 1000 dollars which could be his entire savings.

[Botnake]

...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.

It is unlikely that we will be able to determine such dependence on trading before he loses his deposit and goes in search of money to his relatives and friends. And there will be no way to prevent him from doing this, since there are many decentralized exchanges that do not require any documents to trade on.

And even if we can identify these trading addicts, the exchanges themselves won't care either. Trading exchanges remain a business, just like casinos, the only difference is that gambling casinos do self-exclusion on deeply addicted gamblers, while in trading, if you don't manage your account wisely and responsibly, and continue to trade like gambling, you will be the one at the losing end, while you are putting exchanges taking the best advantage of your funds.

[freedomgo]

There are no certain laws concerning trading addiction but there are some guidelines and approaches that exchanges are responsible to provide to their traders.

Exchanges are required to let their traders understand the risk when trading or promote risk management, setting leverage restrictions wherein exchanges can limit traders leverage so they won't be drawn into its high-risk, and lastly consumer protection so that traders won't end up incurring excessive losses that may eventually lead into trading addiction.

[slaman29]

@Botnake @tvplus006 and most of others You guys keep ignoring my points. You think exchanges care about KYC until and unless the law requires them to? I'm asking if there are any laws, and if there should be, not if exchanges care. You clearly don't even know what you're talking about, managing account wisely and responsibly lol your campaign manager must be generous to let you post such crap.

There's no such law that it will really be focusing into the people who had been neither playing or doing trades neither on a casino or exchange platform.

Wrong. Casinos have such laws. They actually have a duty to identify such problem users and prevent them from it. How long have you been gambling online?

We know that gambling addiction is too dangerous for someone because no matter if he learns many things related to gambling, he still doesn't have a high chance to win. He cannot recover his losses.

But in trading, there still a chance that he can recover his losses especially if he can see the way to sell the coin in the high price. We know that the price can reverse to the high price. The point is when they can learn many things about trading, he is not gambling because he know how to analyze the market, how to use the indicator and all things.

Only people who can not learn more about trading that will lose more and more.

If you could only see that the way you are reasoning is exactly how a gambler reasons: I can reover my losses if I can see the way to bet on a winning hand. The roulette/cards can reverse. I have been analyzing the spins and dealers and use all kinds of strategy.

If you think only people who can't learn more about trading lose, you have never traded properly in your life.

Anyway, I give up on this thread. I wanted to ask a question and majority of users totally miss the point.

Well, I’m not sure if trading sites track user activity to target addiction, because honestly, I don’t think they care how much money or time we spend on them. Maybe I missed it, but I’ve never heard of anyone committing suicide because of trading, unlike gambling.

Why not google and see for yourself. There are even studies that correlate suicide rates to market crashes (that's usually when traders lose money). https://business-school.open.ac.uk/news/stock-market-crashes-linked-higher-rates-suicide-%E2%80%93-new-research

It even says suicide is deeply ingrained in finance, but not much research done about it. Until now.

It appears that there were an additional 6,566 suicides across our sample nations in the 2008-09 period that were a direct consequence of the rapid decline of equity values.

They sampled 36 nations.

Now you tell me, is this a health concern or society concern or not? And refer back to my question, which isn't about where anyone cares, but whether there should be laws about it (trading addiction).

Remember, I'm not talking about traders like me or you maybe who put $100 and if we lose it, we're okay. Talking about addicted traders who show addiction behavior. Chasing losses. Depositing more and more. Using money not theirs. Borrowing or stealing to trade.

[tvplus006]

Anyway, I give up on this thread. I wanted to ask a question and majority of users totally miss the point.

Obviously, this is because you can't state your question clearly, because your head is in a mess)

[doomloop]

This isn't gambling, if you trade and lose money then you do it all by yourself and it wasn't designed to make you lose neither, look at the market right now for example, it is so easy to make money right now, if you are still making a loss then you are just a bad trader and nobody is responsible for that.

Gambling is more about losing, because there is a house edge and that means you are going to lose no matter what happens, but trading isn't like that and you could win if you know how to trade. This is why there are no laws about trading addiction, to be fair I am not sure if trading could even become an addiction, that doesn't sound that realistic to me, trading never felt like something I can't stop doing like an addiction.

When you are not ready for trading, you will surely lose. There's no house edge on this market, so the strategies are all on you how you can take advantage of the market. If there will be so-called trading addiction, high likely that you will be on the positive side because you will gain a lot of tricks how to get profits from your trades.

Not ready can also mean we won't do it, so there will be no lose for us yet. A lot of people are saying that trading is like gambling, not only because they can share the same type of risk but they might also have other similarities including the house edge. It is just that in trading it is placed differently. Maybe the house edge in trading is their trading fees? In gambling, there is a house edge but the game still depends on us. There are still bots now and scripts.

We can even ride the other live traders/gamblers if we are not confident with our abilities. Addiction is still an addiction even if you think it causes an advantage, so it is still/always important to do things in moderation only.

[Aanuoluwatofunmi]

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

There are no laws on trading addiction, we are the ones that should personal set limits or restriction to serve as boundaries to what we should do and not, because we are going to be responsible for the trading we are doing and not one will bear the pain along with us, since we are using our personal money to risk trading, when it comes we win, when it doesn't, we lose, and i know very well that we cant allow or afford to make a continuous loss on trades, as so, we may not want to be too addicted in doing it the wrong way, instead we have to be mindful and conscious of every steps taken when trading.

[Questat]

This isn't gambling, if you trade and lose money then you do it all by yourself and it wasn't designed to make you lose neither, look at the market right now for example, it is so easy to make money right now, if you are still making a loss then you are just a bad trader and nobody is responsible for that.

Gambling is more about losing, because there is a house edge and that means you are going to lose no matter what happens, but trading isn't like that and you could win if you know how to trade. This is why there are no laws about trading addiction, to be fair I am not sure if trading could even become an addiction, that doesn't sound that realistic to me, trading never felt like something I can't stop doing like an addiction.

Right, trading is different with gambling, you have all the control to end up in profits, unlike in gambling the house should always be the one to win. There are no laws on trading addiction, but there’s always rules to follow so you won’t be trading like gambling, so you won’t end up getting addicted to it, or is addiction really exists?

One thing is certain, you can always create a positive outcome with trading if you are knowledgeable and skillful on it, that’s why you don’t have to rush in trading but good preparation should always be a must.