Daytrading has dominated the headlines recently, what with the extreme trading activity resulting from redditor’s identifying heavily shorted stocks on the market. This may sound foreign to most, but the news got a lot of people excited and interested in trading on the stock market. For those in early sobriety, you may be looking at this as an interesting hobby and a way to quickly repair your ailing financial situation. However, you should be cautious before dipping your toe in the trading pool, as daytrading has the potential to become a compulsive behavior for those of us in recovery.
First, daytrading is a high risk endeavor with the potential for you to incur substantial losses financially in a matter of seconds. The stock market generally rises in the long term, but in the short term timeframe of daytrading stock prices can experience wild swings, resulting in either great profits or great losses depending on your actions. If this sounds like gambling, that's because essentially it is! The only difference between gambling and investing in the stock market besides public perception is the ubiquity of stock trading and restrictions on trades designed to prevent people gambling money they do not have. However, you are still able to lose all the funds you’ve deposited into your trading account, and most of us in early recovery are in no position to lose any money in this way!
Setting aside the obvious issue of risking the loss of funds in early sobriety, clearly there are parallels between daytrading and traditional gambling. As such, there is an inherent danger for recovering addicts and alcoholics to develop an addiction to daytrading, hindering our efforts at recovery and likely leading us right back to our substance of choice to cope with the stress of losing money in the market. Instead of engaging in daytrading in an attempt to get rich quick, those of us in recovery are much better off setting up regular deposits into a savings or money market acccount and leaving it alone, allowing it to accumulate over time.
Daytrading is the latest fad for millennials today, as they pursue dreams of wealth and opulent lifestyles built on the backs of savvy trades netting them hefty profits. However, just as is true in recovery, there are no legitimate shortcuts to success in the financial world, and daytrading is far from a sure fire way to improve your financial standing in life. Rather than focusing on that or other get rich quick schemes, instead focus on building your recovery and healthy habits in sobriety, including setting money aside in savings. This will serve you far better in life, and is a much safer plan in terms of your recovery efforts!