Why Traders Get Hooked on Dopamine Loops: Trading is unique in that feedback is immediate, public/known (in P&L), and financially consequential. The volatile schedule of reinforcement mirrors intermittent variable reward systems, the most neurologically addictive pattern known to psychology...found in casinos, social media, and, yes, the markets. Dopamine is not released when you get a reward...it’s released in anticipation of one. (While getting my doctorate, I didn't realize how much my love of neuroscience would eventually inform my work) In trading, every time you place a trade, your brain engages a prediction: “This will/should work.” > If the outcome exceeds your expectations, dopamine surges. > If it falls short, even if the result is still profitable, dopamine levels may drop. This discrepancy is called reward prediction error, and it forms the core of neurochemical reinforcement learning in the brain. In practical terms: **Winning more than expected = Positive prediction error → Dopamine surge → Reinforces that behavior **Winning less or losing = Negative prediction error → Dopamine drop → Creates frustration, hesitation, or revenge trading This loop literally wires the brain over time. Traders can become addicted not to money itself, but to the emotional high of positive prediction errors. Likewise, they can spiral when chasing the "corrective dopamine high" that never comes. The implication? Even highly disciplined professionals can become dopamine-compromised. They may: **Take impulsive trades to “get back” to their high **Overweigh recent outcomes over long-term edge **Feel depleted after losses, missed opptys, leaving $ on the table... due to a dopamine dip. Learning to tame the loop or re-wire the system, is a focus in my work. Know thyself = Self-awareness = Your best edge #tradermindset #TradingPsychology $ES_F $NQ_F $SPY $QQQ