What's the purpose of trading? | Forex Factory

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What's the purpose of trading?

  • #1
  • First Post: Jul 17, 2020 6:12pm Jul 17, 2020 6:12pm
Hi everybody. First of all I'm sorry if this question has been asked somewhere.

I was wandering what's the purpose of trading? I mean, every job has a purpose: the lawyer defend someone, the doctor saves human lives... Even a football player has a public to refer to, without public he wouldn't be famous.

Hedge funds traders and all non-retail traders basically trades money of other people, or banks or whatever.

We, as retail traders, who aspire/are doing this as a full-time job what purpose do we have to do this? There isn't any social utility into being a retail trader.

What you think?
There is no try
  • #2
  • Jul 19, 2020 1:41am Jul 19, 2020 1:41am
Make Money
Make our dreams come true
Support Family and Friends.

More life.
  • #3
  • Jul 19, 2020 8:56pm Jul 19, 2020 8:56pm
Pay taxes
  • #4
  • Jul 19, 2020 11:58pm Jul 19, 2020 11:58pm
Quoting Wise-Jedi
Hi everybody. First of all I'm sorry if this question has been asked somewhere. I was wandering what's the purpose of trading? I mean, every job has a purpose: the lawyer defend someone, the doctor saves human lives... Even a football player has a public to refer to, without public he wouldn't be famous. Hedge funds traders and all non-retail traders basically trades money of other people, or banks or whatever. We, as retail traders, who aspire/are doing this as a full-time job what purpose do we have to do this? There isn't any social utility into...
Inserted Video
Without VSA, you're playing checkers while the Smart Money plays chess.
  • #5
  • Jul 20, 2020 3:29am Jul 20, 2020 3:29am
Quoting HiddenGap
{quote} https://www.youtube.com/watch?v=MwKYjZ_8EcE
clever marketing playing to peoples egos.
  • #6
  • Jul 20, 2020 3:41am Jul 20, 2020 3:41am
What's the purpose of this video? It rarely answered the OP's question. To the OP, it depends on who does the trading. Some trade for fun, for ego, for a quick fix; but it should be done for sustainable wealth creation imo.

KP

Quoting HiddenGap
{quote} https://www.youtube.com/watch?v=MwKYjZ_8EcE
Do your homework, follow the footprints of smart money
  • #7
  • Jul 20, 2020 4:24pm Jul 20, 2020 4:24pm
Quoting HeyYou
ummm, because I think it's a good way to invest my hard earned money? nothing better to do, actually I invest in several things btw...
I might understood that trading isn’t your main job. I was talking about trading as a main job.

Quoting KoiFish
There is a bit of a ecosystem who feed off the retail traders. Brokers, trading platform / programmers, books, mentors / training courses, analysits, squawk services, ext..
If you are a profitable trader you need only a broker.

To ones that answered “ego”: are you really ok with doing this job, actually dedicating most of your life to it, just because of your ego?
There is no try
  • #8
  • Jul 21, 2020 1:18am Jul 21, 2020 1:18am
What do you think about the reduction of the leverage?
There is no try
  • #9
  • Jul 21, 2020 1:43am Jul 21, 2020 1:43am
Trading, and this will be controversial, is a posh form of gambling! All we're doing is picking a direction and basically guess which way the market is going, we add all fancy indicators, technicals and fundamentals to help us, but we're really gambling! The big money is made in teaching newbies how to trade.

But on the plus side we add liquidity to the markets and allow ourselves to add to the "big" banks (and large hedge funds) coffers. In other words, it's a rigged market...
  • #10
  • Jul 21, 2020 1:45am Jul 21, 2020 1:45am
Quoting Wise-Jedi
What do you think about the reduction of the leverage?
On the whole the reduction in leverage was inevitable, as it was out of control! So you could say it was good, in the long term.
  • #11
  • Jul 21, 2020 1:51am Jul 21, 2020 1:51am
In my opinion the reduction of leverage is just no-sense. If a guy doesn't know what he doing, in trading he will bust his capital with or without leverage.
To people who begin with a little capital, such as <10k, it's a real detriment. I mean, if I wan't to trade on the 5 min chart with a 10 pips stop and a risk of 2% all my capital would be used as margin denying me to open other positions.

That's unfair.
There is no try
  • #12
  • Jul 21, 2020 1:56am Jul 21, 2020 1:56am
Quoting Wise-Jedi
... what's the purpose of trading? ...
Freedom and independence ... (socially and financially) ...
Market is not random but unpredictable
  • #13
  • Jul 21, 2020 2:24am Jul 21, 2020 2:24am
Quoting Wise-Jedi
In my opinion the reduction of leverage is just no-sense. If a guy doesn't know what he doing, in trading he will bust his capital with or without leverage. To people who begin with a little capital, such as <10k, it's a real detriment. I mean, if I wan't to trade on the 5 min chart with a 10 pips stop and a risk of 2% all my capital would be used as margin denying me to open other positions. That's unfair.
Quite often the regulators make no sense, but they like to justify their postion from time to time and say they're protecting us from ourselves
  • #14
  • Jul 21, 2020 2:25am Jul 21, 2020 2:25am
Definitely to earn profits, have knowledge and experience.
  • #15
  • Jul 21, 2020 2:26am Jul 21, 2020 2:26am
Quoting 4for4
{quote} Freedom and independence ... (socially and financially) ...
If you're one of the fortunate traders, then yes
  • #16
  • Jul 21, 2020 2:33am Jul 21, 2020 2:33am
Quoting KoiFish
{quote} I believe brokers should be able to decide leverage as they have people working for them who quantify risk management. And the liquidity providers define this mostly. I believe in capitalism, and as such don't believe government should interfere in free market. Personally, I trade futures, so the CFD leverage restrictions don't apply directly, but may indirectly effect liquidity/fills. Spot, cfds, futures, options, stocks, bonds, ect..- they're all connected.
Government have to interfere, by regulation. Markets have to be regulated, otherwise the big boys will manipulate everything and leave no space for us small retail guys. Freedome and capitalism sure, but regulation is necessary

You trade Futures, one of the most regulated markets in the world, and it's probably the best........
  • #17
  • Jul 21, 2020 3:25am Jul 21, 2020 3:25am
Quoting rover99x
{quote} If you're one of the fortunate traders, then yes
Keep trying ...
No other business allows us to practice until we are skillful without any money but our time ...
Market is not random but unpredictable
  • #18
  • Jul 21, 2020 3:28am Jul 21, 2020 3:28am
Quoting 4for4
{quote} No other business allows us to practice until we are skillful without any money but our time
This is a thing that it's took for guaranteed way too much!
There is no try
  • #19
  • Jul 21, 2020 3:32am Jul 21, 2020 3:32am
Quoting Wise-Jedi
{quote} This is a thing that it's took for guaranteed way too much!
Like most things in this world, it’s just a matter of making personal choices ...
Market is not random but unpredictable
  • #20
  • Jul 21, 2020 6:02am Jul 21, 2020 6:02am
This is a really good question. The purpose of trading for most retail traders is to give them a Dopamine rush. Trading is like a drug it makes you high however the funny thing is you get high from the decision to place a trade, not from the outcome of the trade. So therefore most retail traders make way too many decisions and lose all their money because they are chasing that Dopamine High.

Once you get past this and accept this as a reality you can begin to change the way you think about Trading and start to take control over your decisions but you must first realize that you are addicted to trading because of what it does to your brain and then you can overcome it and start to trade for the right reason.

The real reason you want to trade is to find chart or fundamental indications of what smart money is doing so you can do it with them.

I show up each day to see if there is something I can exploit and if there is I exploit it and if there is not I do not feed that Dopamine Monster that lives in my head.
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