A few years ago, I became entangled in one of the most pervasive influences on human behavior—second only to evolution: the stock market. My entry into this world wasn’t entirely by choice; I inherited a significant amount of stocks. Surprisingly, instead of splurging on a Porsche, a motorcycle, or even a new drum kit, I made the mature decision to hold onto the portfolio. I saw it as an opportunity to learn about investing and the dynamics of the stock market.
Thank you for reading this post, don't forget to subscribe!However, while this might sound like a pragmatic choice, I might as well have inherited a bag of heroin and the rigging to go with it. The timing of my inheritance coincided with a booming bull market. Experiencing four out of five trading days in the green changes a person in subtle yet profound ways, leading to behaviors that, on profitable days, are immediately and intensely reinforcing.
This isn’t a confession but an observation I’ve found shared by many who have recently become retail investors, particularly those who began during the COVID-19 pandemic. Retail investors—like those who rallied and pushed the price of GameStop stock to unprecedented levels—often get hooked on the rush of seeing their portfolio balances in the green. That surge of well-being and dopamine becomes addictive, much like the fat stacks of cash rappers flaunt with rebellious pride. But when the balance turns red, it rips away that sense of well-being, replacing it with a deflated feeling of existential threat.
Regardless of whether your portfolio is down 1% or 6%, it can feel like a reflection of your personal value—a dangerous and demoralizing mindset. Despite the well-known tenets of investing and the constant reminders of caution from market pundits, something more primal takes over. We respond to market fluctuations as if they were threats to our very survival.
Evolutionary Psychology: The Root of Risk and Reward Sensitivity
From an evolutionary psychology perspective, the impulse to repeatedly check your stock portfolio and tie your self-worth to its performance is an expression of risk and reward sensitivity. Once hunters and gatherers, humans have evolved to be acutely aware of reward opportunities that enhance survival and vigilant in perceiving risks that could threaten it. Today, we no longer hunt on the savanna, but the stock market represents a modern form of hunting, where the portfolio’s performance is the prey, and the market is the savanna. The obsession with checking it mirrors the need to assess the outcome of a hunt.
In both scenarios, the reward for a successful “catch” provides a dopamine boost, reinforcing a feedback loop that, in the natural world, ensured survival. Similarly, in the commodified and conditional plains of the market, we become addicted to the rush of seeing our investments grow.
Social Status, Competition, and Identity
Another explanation for this obsession lies in social status and competition. From an evolutionary standpoint, status within a group often determined access to resources and mates. Today, financial success can be viewed as a proxy for status. A man might see his portfolio as a direct reflection of his status and success, which in turn influences his self-esteem. Constantly monitoring it becomes akin to assessing his rank in the social hierarchy.
In a slightly feminist view, since men interact with the stock market more than women, this obsession might also be seen as a reflection of traditional gender roles in financial matters.
Psychological Mechanisms at Play
From a psychological perspective, frequent portfolio checking might be a way of coping with or controlling negative or maladaptive self-beliefs. Stock market success can challenge feelings of inadequacy, providing a sense of agency over one’s destiny—what some might call the holy grail of financial freedom or “fuck you money.” While this can lead to megalomania, it often feels better than helplessness and being at the mercy of others. A thriving portfolio can give one the confidence to take personal responsibility, even though market events are beyond any one person’s control.
This intertwining of portfolio performance with self-worth, status, and identity makes individuals vulnerable to market fluctuations, leading to emotional swings over which they have little agency. In contrast, someone with an internal locus of control might recognize that market fluctuations are beyond personal control and therefore not a reflection of their value.
Capitalism, Social Comparison, and the Lure of Mobile Devices
Capitalism, in many regards, is a cultural narrative that can lead individuals to internalize the belief that their financial worth directly measures their personal worth. In cultures with a strong capitalist ethos, wealth accumulation is often equated with personal success, almost as if blessed by divine favor.
Social comparison theory suggests that individuals determine their social status and personal worth based on how they stack up against others. The stock market provides a measurable way to compare oneself with others, making constant monitoring a way to gauge personal success—or bathe in it, like a bathtub full of crystal-clear water.
The ubiquity of mobile apps has made this constant checking even easier—turning every spare moment into an opportunity to peek at portfolio performance.
Behavioral Economics: Loss Aversion and Overconfidence Bias
Behavioral economics offers two key explanations: loss aversion and overconfidence bias. Loss aversion highlights that people are more sensitive to losses than gains. The fear of losing money—and thus personal failure—drives individuals to frequently check their portfolios, amplifying ordinary emotional reactions to normal market dips and increasing anxiety and self-doubt. This discombobulates emotional well-being and compromises cognitive function, leading to poor decisions made out of panic rather than rational consideration.
Overconfidence bias, on the other hand, occurs when one mistakes luck, a sound method, or a common-sense investment thesis for the ability to predict market outcomes. This leads to an inflated sense of control over the portfolio’s performance. When the market performs poorly, it challenges this belief, resulting in a hit to self-esteem.
Self-Concept: Identity and Financial Success
In some cases, a person’s identity becomes fused with their financial success. The portfolio isn’t just a financial tool; it’s a core part of who they are. This makes it difficult to separate the self from the portfolio, so its fluctuations directly impact the individual’s emotional state.
In societies that place a high value on achievement—especially financial success—individuals might measure their worth based on their accomplishments, with the portfolio acting as a scorecard for life success.
Conclusion
If you find yourself in the habit of constantly checking your portfolio, take a moment to ask yourself why. What is your intention when checking? What need does it serve? Understanding these emotional and psychological drivers is the first step toward finding balance, remaining level-headed, and being more present for what truly matters, as well as the market. If you need support and would like to discuss this more, don’t hesitate to reach out. After all, it’s your life, and you want to enjoy it for as long as possible—that’s the reason you’re investing.
