The Ethics of Trading - Is Trading Parasitic? | Forex Factory

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The Ethics of Trading - Is Trading Parasitic?

  • #1
  • First Post: Aug 21, 2009 11:45am Aug 21, 2009 11:45am
Is trading moral? Is it parasitic? How do you rationalise it?

Comments?
  • #2
  • Aug 21, 2009 11:50am Aug 21, 2009 11:50am
I rationalise it by thinking that traders help to provide liquid markets for investors and commercial enterprises to buy and sell in, and with regards to the stock markets, for companies to raise money, expand and take on more staff. I can't see the harm in that.

On the other hand, living abroad and still getting paid in my home currency I have, on the odd occasion, been less philosophical about it when cable has taken a dive.
  • #3
  • Aug 21, 2009 5:35pm Aug 21, 2009 5:35pm
"It is not from the benevolence of the butcher, the brewer, or the baker that we expect our dinner, but from their regard to their own interest." - Adam Smith

Even if it is good for the liquidity of commercial interests that we traders exist, we primarily exist for ourselves. To have it any other way would be to make yourself the slave of others.

Actually, trading should be thought of as the most ethical vocation. The only actions are consensual, voluntary exchanges. In every transaction, each side, based on their own circumstances, believes they are better off than before.
  • #4
  • Aug 22, 2009 12:29am Aug 22, 2009 12:29am
Quoting ThePipDoctor
Is trading moral? Is it parasitic? How do you rationalise it?

Comments?
Trading is nothing but an exchange, Mate. Don't take it so personal.
  • #5
  • Aug 22, 2009 1:30am Aug 22, 2009 1:30am
Quoting wadams
Even if it is good for the liquidity of commercial interests that we traders exist, we primarily exist for ourselves. To have it any other way would be to make yourself the slave of others.
Sure. I am not suggesting that this plays any part in my reasons for participating and never will.
  • #6
  • Aug 22, 2009 2:17am Aug 22, 2009 2:17am
Quoting ThePipDoctor
Is trading moral? Is it parasitic? How do you rationalise it?

Comments?
1) Depends on what is moral to you.

2) Of course it is. One benefits at the expense of another.

3) I don't even bother
  • #7
  • Aug 22, 2009 4:01am Aug 22, 2009 4:01am
Quoting ThePipDoctor
Is trading moral? Is it parasitic? How do you rationalise it?

Comments?
Damn well it's parasitic! And I enjoy every second of it!
I'm not going to work for a single minute in this life, there's no money that can buy my freedom. And a part that's even more fun: in the markets, between myself who trades a 200k account and a millionaire who has 20 million $ stashed in a bank - there's no difference! I get a piece of him every day, if he wants to get a piece of me he's invited to do what I do.
I remember that a percentage came out from a broker who had a few tens of thousands of clients... only 1% of them made money in the markets constantly, including the ones who were on break-even.
So what's a millionaire with 20 million $ stashed in a bank worth when compared to me and the rest of the traders who make money?! Nothing! He works 16 hours a day so that he doesen't lose his business, he exchanged his time for money. While I get up at 1 o'clock and I'm free to do whatever I want. Time is the only asset that is finite in this world.
Trading is 100% parasitic, if you are succesful traders enjoy every minute of it, enjoy every 100$ because you made them without working.
When a company gives you 4000$ / month but earns 400k from your work, is that moral? So here it is - we have our chance to get revenge.
  • #8
  • Aug 22, 2009 7:36am Aug 22, 2009 7:36am
Is prostitution parasitic?
  • #9
  • Edited 8:21am Aug 22, 2009 7:47am | Edited 8:21am
i think you cannot be immoral in the spotfx-market because it is too big and just reflects reality. even if a currency falls hard... it just has to. some people can feel or see reality and others not and keep trying... IMHO this has no moral implications.

i think in futures and options market you can take positions wich effect peoples lives outside the markets this could be immoral to me.

about parasites.... i try not to be a host that's all.
even with my eyes open i cannot see everything
  • #10
  • Aug 22, 2009 7:59am Aug 22, 2009 7:59am
I find it interesting that an adult needs to ask what is moral and immoral. I thought only kids needed to do that.
  • #11
  • Edited Aug 23, 2009 5:22am Aug 22, 2009 8:14am | Edited Aug 23, 2009 5:22am
It's the easiest way to produce money you then spend on the local economy, supporting them.

It's similar to caving:
Trading is an adventure with thrills, beauty and mystery along the path. To brave its risks well make one dependable. Otherwise, you're just cannon fodder or leave a mess of an account that's irreplaceable.

I've read some say shorting stocks is immoral, since the company could theoretically cease to exist on a shareholder's whim. To me, though, trading is a balance of power, a temporary thing that makes a more efficient market for everyone.
  • #12
  • Aug 22, 2009 8:15am Aug 22, 2009 8:15am
Quoting Dopey
I find it interesting that an adult needs to ask what is moral and immoral. I thought only kids needed to do that.
i think we have to think about ethics always.... are your opinions the same as the answer you got as a kid??

Edit: what do think pipdoctor about your questions??
even with my eyes open i cannot see everything
  • #13
  • Aug 22, 2009 8:28am Aug 22, 2009 8:28am
Parasitic? Absolutely!
Moral? Maybe. If you are a retail trader, your trades are matched with another trader going the opposite direction as you. No harm to anyone there. If you are George Soros and you tried to take down the GBP for profit, you have committed an immoral act.
  • #14
  • Aug 22, 2009 8:49am Aug 22, 2009 8:49am
Quoting GEfx
Parasitic? Absolutely!
Moral? Maybe. If you are a retail trader, your trades are matched with another trader going the opposite direction as you. No harm to anyone there. If you are George Soros and you tried to take down the GBP for profit, you have committed an immoral act.

Odd really, Soros spends so much time telling others how to live. I thought he was perfect?

  • #15
  • Aug 22, 2009 8:59am Aug 22, 2009 8:59am
Quoting clockwork71
Odd really, Soros spends so much time telling others how to live. I thought he was perfect?

He thinks he is perfect, too. LOL
  • #16
  • Aug 22, 2009 9:01am Aug 22, 2009 9:01am
Quoting ThePipDoctor
Is trading moral? Is it parasitic? How do you rationalise it?

Comments?
*************************
"The symbol of all relationships among [rational] men, the moral symbol of respect for human beings, is the trader. We, who live by values, not by loot, are traders, both in matter and in spirit. A trader is a man who earns what he gets and does not give or take the undeserved. A trader does not ask to be paid for his failures..."

Ayn Rand
  • #17
  • Aug 22, 2009 9:18am Aug 22, 2009 9:18am
But aren't many modern industries parastic?

How much food is enough? A lot of people in 3rd world countries starve, while 1st world people have too much to feed upon. Do we need coca-cola, hamburgers etc. etc? How much does advertising play a role in every purchase you make of those? Were you really hungry or thirsty? Or did you buy it just because you could? If if you buy something because you can, doesn't that make the company that made your product a parasite as well?

I live in Japan, and women here love their brand goods. As a matter of fact I think Louis Vitton gets something like 60% of its yearly profit from the Japanese market alone. I hate the stuff, I think people are only paying for the name and you get what they call "super copies" from Korea for less than 10% what you pay here. If a company is only trading upon its name for a luxury item, it certainly makes it a parasite to me.
  • #18
  • Aug 22, 2009 9:19am Aug 22, 2009 9:19am
Quoting j-pax
i think we have to think about ethics always
Sure we do, but we do it as we grow. Morals and ethics don't really change as you age. What was wrong when you were 15 is still wrong when you're 50. The situations that arise may be new, but the moral and ethical questions are not.

Also, asking anonymous folks on a forum what is moral or not is strange. It's kind of like asking a priest to tell you how to behave. Oh, wait a minute, lots of people need others to tell them what is right or wrong. My bad.
  • #19
  • Aug 22, 2009 9:55am Aug 22, 2009 9:55am
Quoting Dopey
Sure we do, but we do it as we grow. Morals and ethics don't really change as you age. What was wrong when you were 15 is still wrong when you're 50. The situations that arise may be new, but the moral and ethical questions are not.

Also, asking anonymous folks on a forum what is moral or not is strange. It's kind of like asking a priest to tell you how to behave. Oh, wait a minute, lots of people need others to tell them what is right or wrong. My bad.
i agree that lotsof people need others to tell them... that's why it's good to talk about ethics and read different idea's... maybe you get confused and think for yourself...

and the moral and ethical questions are not new but alot of what was wrong to my grandparents is not wrong to me.... lately i often think they where right on many topics
even with my eyes open i cannot see everything
  • #20
  • Aug 22, 2009 10:18am Aug 22, 2009 10:18am
Quoting j-pax
i think we have to think about ethics always.... are your opinions the same as the answer you got as a kid??
I agree, otherwise it would imply that you stopped developing when you were a kid and now view the world in the same way as an 8 year old does.
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