I like that story about the farm. Incidentally I was planning on buying land and growing some of my own food hydroponically/or otherwise. Kind of going the opposite way I suppose-away from the marketing and noise. With your background, do you feel that food is proportionately valued with the rest of this market?
Fair and moral have absolutely no connection. "fair" implies justice. Moral has nothing to do with justice or fairness. Moral is based on Love and is what is best for people, and many times justice and fairness have nothing to do with that. Just because the two co-incite with each-other often enough does not equate equality nor parity.
This may sound like a semantic argument, but definition here is important, there is no morality in capitalism, no matter how fair or just it is.
Trading is nothing more then one mans wisdom against another, regardless of what is exchanged -- money, wives, camels or gold...
Last edited by Zxeses; March 28th, 2015 at 02:55 AM.
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I know what you mean, but did you ever consider this aspect:
Trading is a bet, a game. The conditions are clear: one side says the market rises, the other side says the market falls.
One will win. Why should the winner feel guilty now? He could be the looser, too. And where is the respect against the one, who has lost? Doesn´t it make it double hard for the one who has lost, if the winner now aditionally loads his feeling of "guilt" on him, too? This is why sportsmen and women shake hands after a game. Until nothing is manipulated and the winner doesn´t start to ridicule the looser, everything is ok, or?
I figured out what this guilt thing is about. I've heard so many stories about traders coming in, having a hard time, emotionally struggling-that I expected to do the same. But, as I kept my risk low and let my profits-I began to wonder if this was all there really was to it. I guess I felt guilty over "not paying my dues", and recognizing that something was wrong I scaled back and came here. This was risk control. I do not plan to pay my dues now, or ever. I will also admit that I was afraid of incurring my first drawdown, but I realize when it happens it'll happen and I'll push through it. Happy trading!
Last edited by dark pool; March 28th, 2015 at 12:58 PM.
You really think you have this all figured out, don't you? You're missing a few important chapters of your "here's how it works" fairy tale.
It's really very simple. If you're a trader, you're running a service business. Yes, even as a speculator you are providing a service. That service is price discovery. If you don't understand that then you have no right to even open a trading platform (or even a trading forum unless you're here to ask questions and learn). How do you think any market would work if there was no one willing to take the other side of a contract (or if you had to wait days, weeks or months for that contract to be filled)? Same way any business would work with little or no customers... business would grind to a halt and there would be no economy. I'll stop there because others have already addressed this point in more detail and I choose to help you understand something else.
Any consistently profitable trader is NOT a gambler. That trader is a business person. Sure, many gamblers come to the market... but most don't stay long... and not just because there aren't any free drinks or .99 cent shrimp cocktail. If you insist on equating what we profitable traders do as "gambling" then maybe this analogy will work better for you; we are not gamblers, we are THE HOUSE. Like a casino, we operate with an edge; and like a casino we exploit that edge (not any particular market participant) over time. And over time the law of large numbers says we will come out winners. As a "new trader" if you don't develop an edge and learn to think this way you will not last. (Thanks for the money by the way ).
Finally, the money I choose to risk IS NOT the market's money, it's MY money. It's working capital that I control. I can hit "buy" or "sell" on my keyboard and have my orders filled almost instantly to open OR close any order because of other traders who are willing to provide that price discovery/liquidity service.
Not trying to come across as an @sshole, just trying to help you understand that you're not doing any deep thinking here... you're just fantasizing and trying to make a story up about what's going on in the markets... and that story fits what you WANT to believe. It's not really that complicated.
If I haven't been helpful to you here and you really do want long-term success in the markets, good luck because you're going to need more than your share for this to work out for you. In fact, here's another psychological project for you to consider... try trading for longer than a few months and then come back and tell us what it feels like to lose everything when your luck runs out.
You guys are also forgetting another thing. When you exit the market with a profit it doesn't mean someone else exited with a loss. It could mean you exited while someone else entered. Even if you did exit with a profit and are matched with someone else that exited it doesn't mean they have a loss either. Their trade could be the other half of a hedged position in another asset.
This is a very rough example so bear with me:
For instance, lets say someone bought x amount of shares of Exxon Mobil but wanted to offset the price of oil affecting their trade so they sell x amount of oil too (this is assuming there's a positive correlation between Oil and Exxon mobil). Exxon Mobil shoots up 10 dollars and oil shoots up 5, so the difference is a net gain of 5. Even though the trader loss some money on their oil trade they're net positive.
That being said, you can't really tell what's going on the other side of a trade or how your trades affect other people in the anonymity of the market. Either way, if you don't take the other side of the trade someone else eventually will be it bot or human.
Last edited by Itchymoku; March 28th, 2015 at 06:30 PM.
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