BRADFORD, PA – July 30, 1999 – "In light of the recent Atlanta shootings by a day trader, it is imperative that online investment brokerages work harder to protect new and unskilled investors from a tool that can easily be misused and intervention is necessary to prevent another gruesome incident", according to Dr. Kimberly Young, a clinical psychologist and president of the Center for On-Line Addiction.
"The shooting incident in Atlanta is only the tip of the iceberg as the phenomenal growth of online investing has created severe psychological risks among day traders", added Dr. Young, author of "Caught in the Net", the first recovery book for Internet addiction. "Like those with gambling problems, our treatment clinic has seen people who take online investing to excess. In the last year alone, we have seen a tremendous increase in the number of clients who lost their homes, jobs, and marriages due to day trading, often becoming extremely depressed and even suicidal with each rapid market drop".
Addictive patterns of online investing have already become major concerns raised by the Securities and Exchange Commission and the National Association of Securities Dealers. SEC Chairman Arthur Levitt previously questioned if online investing ads have crossed the ethics line and said of brokerage responsibilities, "Firms should remember that while online trading may place significantly more responsibility on the hands of investors, it doesn’t absolve the firms of their obligations to customer." Levitt’s remarks to the National Press Club suggested that much of the day trading that takes place online is no different than gambling.
As part of its efforts to address the emotional problems experienced among some online traders, the Center for On-Line Addiction (www.netaddiction.com) recently announced a unique Partnership Advantage Program, or a mutual link exchange program to provide the first web-based healthcare service for the online brokerage houses. Netaddiction.com offers the most comprehensive web-based educational resources on online behavior including an extensive Resource Center, a bookstore, research articles, referral links, an array of self-tests, and a monthly newsletter. In particular, Netaddiction.com includes a self-evaluation quiz for day traders and email, chat room, and telephone therapy to treat online trading addiction. "Partnering is an effective means for online brokerages to take a proactive respond to the SEC’s concerns and to provide immediate therapy for obsessed day traders", said Kimberly Young, also a professor at the University of Pittsburgh.
The Partnership Advantage Program has already been particularly successful in helping brokerages provide treatment regarding online addiction to their customers. National Discount Brokers (www.ndb.com) is one of the latest brokerages to partner with the Center for Online Addiction in respond to the SEC’s concerns. "Our aim at NDB is to give investors not only a wide array of financial resources and market information but also the educational tools to help them reach their financial goals," said Dennis Marino, Chairman and CEO of National Discount Brokers. "Our link with netaddiction.com will provide important information and resources to understand responsible use of online investing and other Internet services."
The Center for On-Line Addiction was founded in 1995 as the first educational research firm, training institute, and behavioral healthcare clinic for Internet addiction. Professional services include consultation and seminars designed to promote "cyber-wellness" and focus on strategies to maximize use of technology while retaining a balance in one’s life. As a leader in the online mental health field, the Center for On-Line Addiction is internationally recognized and continues to expand its clientele of corporations, educational systems, law enforcement agencies, and mental health clinics. |
