Compulsive Gambling in the Stock Market: Evidence from an Emerging Market

During the COVID-19 pandemic, many new individual investors globally entered stock markets, often pursuing speculative investment strategies that resemble gambling. A concern is trading as a form of gambling can become addictive for some people, documented by several recent studies in developed markets. We contribute to this literature adding evidence from large emerging market, Thailand, where most forms traditional are illegal. field diagnostic checklist American Psychiatric Association compulsive gambling, changing content each item refer market instead In survey 285 Thai investors, we document 9.5% potential problem gamblers, while 4.9% meet stricter criteria addiction. The addiction score explains behavior such frequent trading, day and buying high-risk “lottery” stocks, beyond common factors overconfidence high risk-tolerance. Further, positively related levels stress alcohol use, problems associated with disorders. Our results raise awareness about whose objectives more than long-term investment, when becomes compulsive.