This study shows that a group of individual investors in the financial markets displays symptoms of compulsive gambling, or an addiction to trading, based on a standard diagnostic checklist from the American Psychiatric Association. In a representative sample of Dutch retail investors, we find that 4.4% of the investors meet the criteria for compulsive gambling in the financial markets. Another 3.6% meet the criteria for problem gambling, which is a less severe form of gambling disorder. Investors with symptoms of compulsive gambling problems tend to follow a more active and speculative trading style, indicated by a higher frequency of stock trading, day-trading and investing in derivatives and leveraged products.

Additional Metadata
Keywords Gambling, Individual investors, Trading behavior
Persistent URL dx.doi.org/10.1016/j.jbankfin.2019.105709, hdl.handle.net/1765/122648
Journal Journal of Banking & Finance
Citation
Cox, R.H.G.M, Kamolsareeratana, A. (Atcha), & Kouwenberg, R.R.P. (2020). Compulsive gambling in the financial markets: Evidence from two investor surveys. Journal of Banking & Finance, 111. doi:10.1016/j.jbankfin.2019.105709