Trading and investing are popular activities, and more and more users are involved. At first glance, it’s a great way to make your money work for you and create investment portfolios that will bring good returns. Trading sounds very tempting to many, as it seems like a quick and easy way to earn cash. However, this is not always the case.
Investments fail for many reasons: misjudged risks, market changes, and so on. Many traders do not despair and develop more effective strategies; others may face anxiety and depression. It often leads to losing control and money, respectively. Therefore, there’s a need to implement mechanisms to regulate harmful behaviour. For instance, self-exclusion gambling programs like GamStop can be a great basis.
Understanding Self-Exclusion and Its Benefits
Trading, as well as gambling, can be addictive. Some users lose control over their expenses, thinking they are about to receive huge profits. The inability to stop in time can lead to financial losses and mental health disorders, affecting the quality of life. Implementing self-exclusion programs like GamStop can prevent or minimize the possible harmful impact. The main benefits of such mechanisms include the following:
- Limiting or restricting access to casinos
- Preventing the possibility of the disorder development
- Offering members appropriate treatment options & resources
Overall, once launched, GamStop completely bans access to every casino and gambling platform in its base. Users can choose the period according to their preferences: the minimum self-exclusion time is six months, while the maximum reaches five years. During this time, the problem player can find different hobbies and distract from risky entertainment. If the disease progresses, the addicted can contact specialists for help.
After prohibition, the only way to gamble is through UK casino operators not on GamStop which aren’t controlled by UKGC and operate without a British licence. But you’ll never see any promotion of such sites so it’s pretty difficult to find such platforms and that is why usually nobody thinks about them. However, this is the weak spot of GamStop program and that is why we decided to highlight it. If someday will be a decision about developing a similar scheme for traders this problem has to be solved.
The Need for a Self-Exclusion Scheme in Trading and Investing
Unfortunately, trading can’t always be profitable: markets are changing, and users sometimes experience losses. In such an instance, some lose control, thinking their future strategy will be 100% successful, and continue investing cash. These situations can be compared with casino players who cannot stop spinning the reels, being confident the next round will bring them jackpots.
Trading requires thorough analysis and proper management. Moreover, evaluating all the risk factors is critical when investing money. Mistakes are often inevitable, so traders must control their financial decisions. And in the case of inability to do it, self-exclusion programs can become the best solution. They will provide bans for appropriate platforms and limit access for investors.
During this time, traders will be able to restore their mental health. And, of course, it is casino players to think about future strategies when planning to return to investment activities.
Lessons from GamStop: Implementing a Self-Exclusion Scheme for Traders and Investors
GamStop is the most widespread self-exclusion program. Many users avoid it, stating it’s still not perfect. However, the software has already proved its effectiveness. Over 80% of respondents reported they feel protected from negative gambling consequences or got rid of addiction within the self-exclusion period. Those who didn’t experience positive changes tend to speak about neutral effects rather than complete dissatisfaction with the program.
There’s an opinion that such a method will also work for traders who tend to lose control when investing money. GamCare, the UK’s main authority assisting the gambling-addicted, has already launched its initiative to start such a self-exclusion program. The source highlights that investors face the same symptoms and might also need assistance from competent bodies. In line with responsible gambling, accountable trading should become the new trend!
Support from Stakeholders & Trading Platforms
Implementing self-exclusion programs is impossible without the acceptance of investment brokers. Their participation is a critical factor for the success of this initiative. Reputable gambling operators always inform players about the possible consequences. Trading platforms can adopt these principles and provide investors with all the details about potential risks and outcomes.
Final Insight
Trading is risky and can be in many aspects compared with gambling. At first glance, it’s an activity aiming to bring profits, but investors constantly face risks. Losses are possible even if a person has a well-thought-out strategy and considers all the opportunities. However, a lack of self-control can lead to unpleasant consequences. Programs like GamStop can be a perfect solution for informing users and preventing diseases.
Therefore, it is worth thinking about creating self-exclusion programs for traders as well. Especially since there is no need to create such a program from scratch. For the base can be taken UKGC or GRAI experience with GamStop which will make the new scheme more effective and cheap in developing. This will save a lot of people from bankruptcy and also help to build a good reputation for trading as a profession.
