o, not one person invested over the Internet. But now, by one acount, more than 7million Americans trade online, making up to 25 percent of all trades by individual investors (Fritzlen, 2000). With this trend, more and more people will be using the Internet to do most of their investing.Addiction to Online TradingThe growth of online trading has generated a new breed of addicts: the average day trader. The average day trader looks at the stock market in the same manner as they would a casino. With the stock market, many believe they have a higher probability of winning than in a Las Vegas casino. By winning, I am referring to generating a return from their investment. The stock market seems to be in a more controlled environment than a casino. But if the investor does not actually know what he/she is investing in, the stock market can become a gambling table.The fact is, stock market gamblers stand to lose far more money than casino gamblers, say Devin O'Neil, deputy director of New Jersey's Council on Compulsive Gambling. Day traders contacting the organization have losses of between $50,000 and $250,000, which is significantly more than the $38,000 average debt of casino addicts, O'Neil said (Jones, 1999).An investor needs to be knowledgeable in the company or industry they are investing in. Without knowing a firm'' financial risk, an investor can loose a lot of money.Serious addiction to stock market speculation is growing at an alarming pace, securities regulators and gambling experts say, and becoming more cute (Jones, 1999). Many Internet investors do acknowledge they're hooked on trading online. This inability to stop trading has cost many online investors more than their bank accounts. Many report that they lost their jobs, spouses, house, and even incurring outstanding credit card debt.ConclusionComputer technology has definitely transformed the way people handle their finances. It all ultimately lies on the indiv...
