Playing the markets is a form of gambling addiction
In the October 2002 issue of Money Magazine, journalist Jason Zweig published a ground-breaking article relating to evidence that our brians release the chemical dopamine when we are speculating in the markets. The same chemical is released when we smoke cigarettes, or eat chocolate.
Zweig states, "the dopamine rush we get from long shots is why we play lotto, invest in IPOs, keep too much money in too few stocks and invest with active portfolio managers instead of index funds."
He goes on to say that, "our brains are wired to force us into forecasting; it is a biological imperative. In fact, humans are born with what I've come to call "the prediction addiction."
see also "prospect theory"
Following the arrest of UBS trader Kweku Adoboli who reportedly has cost the bank more than two billion dollars, Bloomberg revisted this subject in this video
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