Dopamine-induced "trading addiction problem" and its countermeasures.

Hello, this is Geru Yamashita.

"Let's prepare for contingencies."



To the students of the Stock Academy,

such stories

are often toldto you.



Then,

"What could happen in a contingency?"

What kind of events could occur?"

they ask.



No,

we cannot know that.



If we knew what would happen,

then it would no longer be a contingency.





"If you can't prepare because you don't know what will happen"

you might think.

However,



speaking of the stock market,

no matter what contingencies occur in the world,

whether stock prices rise or fall,

there are only these two patterns.



Therefore,

traders must always consider

the times when prices rise and when they fall,

if you only think about these two cases,

it's fine.



Everyone,

trading tends to be viewed as difficult, but

whether prices go up or down,

it's only these two outcomes,

so taking preparatory measures in advance is

not as hard as many imagine.





Of course, you don't need special talent.

The one problem is



that emotions get involved there.





The desires to make money

and the fear of losing

entangle,

making it difficult to

make rational judgments.



================================

Posi-Posi Disease

================================



"When I wake up in the morning,

open the chart,

and if I wasn't holding a position at that moment,

I immediately take a position."



Some people say

that.



"I have to be in a position or I can't feel settled,

it's the so-called posi-posi disease."



so they say.



That person studies using technical analysis

and trades,

looking at charts like daily, 12-hour, 8-hour,



and as they watch charts,

the shapes that look like entry opportunities

appear,



"I might miss a chance"

and

the desire to get profits immediately

overlaps with the fear of losing,

and when they open the chart,

they immediately take a position.





And usually

after that they regret entering too early,

and reflect on it.



But,

even if they reflect then,

the same thing repeats again.



When fear and greed are involved,

making rational judgments

becomes suddenly difficult.



================================

To those with Pos-Pos Disease

================================



"I can't calm down unless I'm holding a position"



Many people have similar concerns,

I think.





For those who want to get out of this state as soon as possible but

can't,

what should they do?







That is today's theme.





Earlier,

we had a similar topic in a previous broadcast,

but Pos-Pos Disease remains common,

so we will revisit this theme

and share again.







Pos-Pos Disease is close to a form of

addiction.





If you don't constantly participate in trading,

you may not feel satisfied,

a kind of addiction.



And generally

addiction is said to be linked to dopamine secretion.





What is dopamine?



It is a neurotransmitter that elevates motivation and happiness,

making people feel positive.





However,

when one gear goes wrong

it can trigger addiction.



================================

How to create an addiction

================================


People become addicted to trading in this way,

I will share one example.





While trading, there is a time when you inevitably carry unrealized losses.





For many people,

the time enduring unrealized losses is far longer

than the time in losses.



However,

sometimes stock prices surge,

unrealized losses disappear,

unrealized gains occur,

and funds increase smoothly.



You feel relieved from stress,

and unrealized gains keep increasing,

which feels good.



Some people become excited.

This is a strong excitement.



At this moment,

in your brain

dopamine is released.



It is extremely stimulating, and the thrill at that moment

is engraved in your brain

and difficult to forget.







And then,

they enter again.



Whether they win or lose,

they enter anyway.



At this point

it already resembles addiction,

and what is more problematic is

the tolerance to stimulation that develops.





First, earning just 10,000 yen made you happy, but

after that, you cannot be satisfied with 10,000 yen,

and you increase positions further,

repeating this and



even pouring all funds to buy aggressively.





Even when dopamine is released,

the pleasure becomes insufficient,

and you slide deeper into addiction.





Sensitivity to dopamine dulls,

and this feeling is

something everyone can understand from experience.





For example,

no matter how delicious a dish you eat,

the感動 fades after two or three bites.





Similarly,

dopamine sensitivity dulls,

and you cannot get excited by the same profit as before.



And,

you constantly check the market on your smartphone,

and the number of trades increases.



================================

There is no miracle drug that cures Pos-Pos Disease.

================================


Escaping addiction is not easy.

There is no antidote.





However, there are things you can do.



Avoid triggers as much as possible,

that is,



when addicted to trading,

there will be triggers like

opening the login screen of your securities company.

These are triggers of addiction,

and you should avoid pulling that trigger as much as possible.



If you open the login screen,

at that moment,

dopamine may already be released,

so to avoid falling into addiction,

do not pull that trigger.







Once you pull a trigger, there is no turning back.





Specifically,

'Check charts only once a day'

for example.



And finally one more thing.



With your own willpower

to forcibly improve your state of dependence

likely will not be very successful.





Rather than relying on willpower,

place yourself in an environment where your dependence

can naturally improve.



Thank you for watching until the end today as well.

Kei Minoru Shitayama