Some Clarifications: Sadomasochism usually has some kind of sexual connotations; I donât mean it in that way at all (so get your mind out of the gutter). I use the word as if it means having a secret motivation to engage in Evil Tendencies. Habitually losing more than it is prudent in the market is a form of sadomasochism, as is smoking 3 packs of cigarettes a day, eating till your 200 pounds overweight, etc., etc. The Economic/Statistical Evidence for this assertion: Prospect Theory The Biological Evidence: The Lucifer Principle: A Scientific Expedition into the Forces of History by Howard K. Bloom http://www.howardbloom.net/ Read the article: Chimpanzees and Romans, Why Both Make War. The two theories combined explain every act of war, famine, domestic violence, unhealthy addictions, gambling losses, and every other form of human depravity.
I absolutley believe people have sadistic and masochistic sides. Sadism, crushing your enemies, your competition, beating your potential mates into submission, that's just natural. All animals do it. As civilised creatures we have taboos against that sort of behavior, but we still do it in subtle or even unconscious ways. Masochism is something we engage in because it makes us feel sexy. When someone says they just blew out their account trading, they are really saying "look at me, baby! I'm a big, sexy, risk taking, high-testosterone, badass"! These are only primitive subconscious tendencies of course, but we can't keep the subconscious in check all the time.