T2W Trading Community

F) The thrill of winning
This is not the same as A) The desire to make money. The thrill of winning is a psychological pay-off rather than a material benefit. It is interesting that the thrill of the occasional win is enough to keep most people playing a losing game, whether it is in the markets or elsewhere, e.g. the national lottery.
 
Most option traders lose overall, yet most will be able to show you some enormous percentage gainers. Such wins feel great, and repeating such a feat would be highly desireable. People who play fruit machines for hours tend to lose - and they know it - so why keep playing? Because every now and then the machine pays out a large win, and for that moment they are "a big winner" even if overall they're down.
 
G) As a means of gambling
Some people see the markets as just another form of gambling, which they can be if you don't know what you're doing or even if you do but take very high risks. But low risk, long term investing is far from gambling - most people will pay off a mortgage or receive retirement income using the markets in this way.
 
So it depends on your approach. But if the market is used for gambling, then this is a poor reason for trading as the negative edge will eventually have the same effect as the house edge when playing roulette.
 
H) Everyone else is
Some of the greatest crashes in history have occurred because people traded or invested for this reason. It may feel comforting and reassuring to do what the vast majority are doing, but in the markets a contrary approach would probably be better in such circumstances.
 
I) Status
Some overlap with C) here.  You are at a party and someone asks you what you do. You tell them you are "a trader". If you are simply answering the question, fine, but if you really want everyone to know that you are a trader then perhaps your ego is playing a significant part. Watch out for thinking along the lines of  "I'm smart enough to be a trader and you're not."
 
J) You have to
Applies to fund managers only because it's their job. No-one else has to trade, which gives private investors a huge tactical advantage which is frequently thrown away, partly because of D)  If you don't have to trade, you can wait for ideal conditions or set-ups before you do trade, which tips the odds in your favour.
 
K) As a hobby/interest
The markets can provide a stimulating, challenging and potentially profitable activity. As such, it's hard to beat as an interest - there's always something to look at. This motivator doesn't come with any hidden agenda or trap, but care needs to be taken to ensure it doesn't wander or start to overlap with the others above.
 
So, a fairly comprehensive list of why people play the markets. Traders and investors need to understand how seemingly valid reasons or motivators can provide potential traps, and once this is done their impact will be considerably reduced.