Investing is supposed to help us build a better financial future. But money is emotional, and when markets fall, investments go wrong or trading becomes obsessive, the effects can extend far beyond your portfolio. Financial stress can affect sleep, relationships, concentration and overall mental well-being. The Financial Consumer Agency of Canada specifically notes that financial stress can interfere with our health, families and relationships. (Canada)
For most people, feeling disappointed after losing money or checking a portfolio more often during a volatile market is not necessarily a sign of a serious problem. But there is a point where investing can start having an unhealthy influence on your life. Recognizing that point — in yourself or someone else — matters.
When Investing Starts Affecting Your Mental Health
One of the easiest questions to ask yourself is: Is my portfolio affecting how I live my life when the market is closed?
Some warning signs can include:
- Constantly checking stock prices or your brokerage account throughout the day
- Losing sleep because of your investments
- Feeling extreme anxiety, anger or depression when your portfolio falls
- Being unable to concentrate at work or spend time with family because you are thinking about the market
- Avoiding friends or family after losing money
- Feeling that your self-worth depends on your investment performance
- Taking increasingly large risks trying to recover previous losses
- Using alcohol, drugs or other behaviours to cope with investment losses
- Feeling hopeless or trapped because of financial losses
Investing will always involve some level of uncertainty. But your portfolio should not control your emotional well-being.
Can You Become Addicted to Investing?
Long-term investing itself should not be confused with gambling. Buying shares in quality businesses, diversifying your portfolio and investing toward long-term financial goals are very different from gambling. However, trading behaviour can become compulsive.
A person may begin chasing the emotional rush of making money rather than investing based on a rational strategy. Speculative trading, options, leverage, cryptocurrency or highly volatile stocks can make this particularly dangerous when someone becomes focused on continually increasing the size or frequency of their bets.
Warning signs could include:
- Feeling unable to stop trading
- Chasing losses with increasingly risky trades
- Depositing more money immediately after losing money
- Borrowing money or using credit to invest
- Investing money needed for rent, groceries, bills or emergencies
- Hiding investment losses or trading activity from a spouse or family
- Lying about how much money has been lost
- Feeling restless or anxious when unable to trade
- Repeatedly promising yourself you will stop, only to start again
The Responsible Gambling Council describes difficulty stopping and continued harmful behaviour as important warning signs when determining whether gambling has become problematic. Similar patterns can be worth taking seriously when speculative trading begins resembling gambling behaviour. (Responsible Gambling Council) You do not have to lose everything before asking for help.
When Should You Ask for Help?
Asking for help does not require reaching some predetermined level of financial loss. Consider talking with your doctor, psychologist, counsellor or another qualified professional if investing is consistently causing significant anxiety, depression, sleep problems, relationship problems or difficulty functioning in your everyday life. You may also need to temporarily step away from active trading.
That could mean deleting brokerage apps from your phone, turning off market notifications, stopping the use of leverage or options, or allowing someone you trust to help you create boundaries around your investing activity. Sometimes the best investment decision you can make is simply not making another investment decision today.
Signs Someone Else May Be Struggling
Problems involving money are often hidden. Someone struggling with investing or trading may suddenly become secretive about their finances. They may repeatedly borrow money without explaining why, withdraw socially, become unusually irritable when markets fall or constantly talk about needing one successful trade to recover previous losses. You might also notice major changes in their sleeping habits, mood, work performance or relationships. If you are concerned about someone, you do not need to diagnose them. Ask how they are doing.
Listen without immediately criticizing their investments or telling them what they should have bought or sold. The objective is not to debate their portfolio. It is to find out whether the person behind the portfolio is okay. Government of Canada guidance recommends connecting someone experiencing serious emotional distress with a counsellor, crisis service or trusted person, while listening and showing concern. (Canada)
Mental Health Help in Canada
If investing losses or financial problems have reached the point where you are experiencing severe emotional distress, help is available. If you or someone you know is thinking about suicide, Canada’s 9-8-8 Suicide Crisis Helpline is available nationwide, 24 hours a day, seven days a week, in English and French. You can call 988 or text 988.
If someone is in immediate danger or requires urgent medical assistance, call 9-1-1. (Canada) For concerns involving compulsive trading or gambling-like behaviour, the Responsible Gambling Council also maintains resources for Canadians and can help people locate gambling-support services in their province or territory. (Responsible Gambling Council)
Your Portfolio Is Not Your Life
Every investor will eventually make mistakes. You will buy stocks that fall. You may sell something too early. You may lose money. Even experienced investors make decisions they wish they could change. Those losses can hurt. But an investment account is only one part of your financial life, and your financial life is only one part of your actual life. If investing stops being something that helps you build toward your future and starts damaging your health, relationships or ability to function, it may be time to step away and talk to someone. There will always be another trading day. Taking care of yourself is more important than participating in it.
This article is for general educational purposes and is not medical, psychological or financial advice. If you are concerned about your mental health, speak with a qualified healthcare professional.
