Why do we trade?... no really, why? | Forex Factory

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Why do we trade?... no really, why?

  • #1
  • First Post: Nov 10, 2009 7:30am Nov 10, 2009 7:30am
Ok, before you give the default response of "to make truckloads of $$$", perhaps let me rephrase the question.

What purpose does our trading serve, for others?

Sure, we all know we're in it for the money, the hours, the freedom, the challenge, etc, etc.... but what does our clicking a button, squeezing a few virtual pips out of a trade, really doing for anyone. In what way is it being constructive? What are we producing?

Apologies if this all sounds too deep and meaningful, but a colleague was trying to convince me recently that there is a purpose to our madness. He rambled on about how we provide important liquidity to the markets, and a few other questionable things.

Don't get me wrong, I trade, have for some time, and have no intention of doing otherwise. But, if a doctor heals, a baker feeds, a musician entertains... you get the idea... then please enlighten me as to the private trader's claim to fame.

Cheers.
  • #2
  • Nov 10, 2009 8:14am Nov 10, 2009 8:14am
in a giant almost zero sum ponzi betting game...
there really is no helpful purpose for the bottom feeder traders
taking series 3 and 34
  • #3
  • Nov 10, 2009 8:39am Nov 10, 2009 8:39am
Quote
there really is no helpful purpose for the bottom feeder traders

Of course there is... liquidity. Someone out there has to pay for this.

Quote
Apologies if this all sounds too deep and meaningful, but a colleague was trying to convince me recently that there is a purpose to our madness. He rambled on about how we provide important liquidity to the markets, and a few other questionable things.

Liquidity, yes. If you're trading with a bucketshop broker (which most of us are) then you're reducing the broker's transactio costs by offsetting the trades of others in-house. Once you get to where you're trading directly with an ECN or exchange then you're providing a counter trade for someone else.

All of this aside, what does it matter? Why do we need to produce anything? The slaves that built the pyramids are nameless to this date, having died poor and forgotten. Yet the kings that commissioned them produced nothing, yet are still studied to this day. Production doesn't equal greatness, controlling production does. It's all about power.

Today, production control doesn't often happen at the whim of a few people, but is spread out and controlled thru more democratic processes (shareholders in a company elect the board that oversees the CEO that manages production, traders buy and sell and determine price better than even the best cartel, etc, etc). It's not perfect, but as traders we're a tiny tiny part of that process.

We help to spread out power.
  • #4
  • Nov 10, 2009 8:45am Nov 10, 2009 8:45am
Bloody hell with "providing liquidity".

I do it for the sex.
  • #5
  • Nov 10, 2009 8:55am Nov 10, 2009 8:55am
Gave me the time and freedom to look after my father who is quite ill and by doing so was able to get him to walk again albeit doctors and everyone else said he never would.
Nihil inimicus quam sibi ipse Marcus Tullius Cicero
  • #6
  • Nov 10, 2009 8:57am Nov 10, 2009 8:57am
Quoting opie999
Bloody hell with "providing liquidity".

I do it for the sex.
Which broker is offering sex now? Gives a entirely new meaning to spread.
  • #7
  • Nov 10, 2009 9:22am Nov 10, 2009 9:22am
Quoting Bud Fox
Ok, before you give the default response of "to make truckloads of $$$", perhaps let me rephrase the question.

What purpose does our trading serve, for others?

Sure, we all know we're in it for the money, the hours, the freedom, the challenge, etc, etc.... but what does our clicking a button, squeezing a few virtual pips out of a trade, really doing for anyone. In what way is it being constructive? What are we producing?

Apologies if this all sounds too deep and meaningful, but a colleague was trying to convince me recently that there...
The knowledge you gain from it leaks into all other aspects of life. That's a fact. Trading takes you on a journey for self and through that you gain so much it's unreal. From there, it's up to you what you do with it.
I dream, therefore I become.
  • #8
  • Nov 10, 2009 10:12am Nov 10, 2009 10:12am
Quote
Which broker is offering sex now? Gives a entirely new meaning to spread.

No joke, I'm totally with the wrong broker.
  • #9
  • Nov 10, 2009 10:45am Nov 10, 2009 10:45am
Be mindful that the spread might be related to your own open positions.....
Nihil inimicus quam sibi ipse Marcus Tullius Cicero
  • #10
  • Nov 10, 2009 10:54am Nov 10, 2009 10:54am
Quoting smjones
Which broker is offering sex now? Gives a entirely new meaning to spread.
No wonder you don't want your wife to know your trading again.
  • #11
  • Nov 10, 2009 11:00am Nov 10, 2009 11:00am
Quoting mike w
The knowledge you gain from it leaks into all other aspects of life. That's a fact. Trading takes you on a journey for self and through that you gain so much it's unreal. From there, it's up to you what you do with it.
True, very true Mike..
  • #12
  • Nov 10, 2009 11:53am Nov 10, 2009 11:53am
Quoting mike w
The knowledge you gain from it leaks into all other aspects of life. That's a fact. Trading takes you on a journey for self and through that you gain so much it's unreal. From there, it's up to you what you do with it.
Yeah, that and the sex.
  • #13
  • Nov 10, 2009 2:08pm Nov 10, 2009 2:08pm
Quoting mike w
The knowledge you gain from it leaks into all other aspects of life. That's a fact. Trading takes you on a journey for self and through that you gain so much it's unreal. From there, it's up to you what you do with it.
I agree with this, with the caveat that this only occurs after you've been at this for some time and haven't blown your money quickly. I've been trading for 7 years now and my life is better not because of the money from trading, but from the steps I've taken to be a better trader.

Nice one, Mike.
  • #14
  • Nov 10, 2009 2:10pm Nov 10, 2009 2:10pm
Hey, why don't we take up a collection and get Opie laid?
  • #15
  • Nov 10, 2009 2:27pm Nov 10, 2009 2:27pm
Quoting Bud Fox
Ok, before you give the default response of "to make truckloads of $$$", perhaps let me rephrase the question. What purpose does our trading serve, for others?
Trading itself? Probably nothing.
What you do with the profits and your life as a person? Everything.

Quote
Don't get me wrong, I trade, have for some time, and have no intention of doing otherwise. But, if a doctor heals, a baker feeds, a musician entertains... you get the idea... then please enlighten me as to the private trader's claim to fame.
Turning thoughts and dreams into reality.

Many of the Market Wizards and I'm sure many other traders give heavily to charity. Cloth the naked, feed the hungry, heal the sick, you name it a successful (i.e. wealth) trader can make it happen, if they so choose.
Don't wish it were easier, wish you were better. ~ Jim Rohn
  • #16
  • Nov 10, 2009 2:28pm Nov 10, 2009 2:28pm
Quoting Dopey
Hey, why don't we take up a collection and get Opie laid?
I'll chip in, but only since it's for Opie. We going with $4000/hr supermodel or corner street girl?
Don't wish it were easier, wish you were better. ~ Jim Rohn
  • #17
  • Nov 10, 2009 2:31pm Nov 10, 2009 2:31pm
Quoting Dopey
I agree with this, with the caveat that this only occurs after you've been at this for some time and haven't blown your money quickly. I've been trading for 7 years now and my life is better not because of the money from trading, but from the steps I've taken to be a better trader.

Nice one, Mike.
Exactly, that's why so many people never get to see this phase and that's a shame. Better trader = better human being, for the most part.
I dream, therefore I become.
  • #18
  • Nov 10, 2009 3:15pm Nov 10, 2009 3:15pm
Providing liquidity is a valid answer. Trader's help make prices more informative. Informative prices are a necessity for the efficient distribution of goods and services.
  • #19
  • Nov 10, 2009 3:19pm Nov 10, 2009 3:19pm
Quoting LasVahGoose
I'll chip in, but only since it's for Opie. We going with $4000/hr supermodel or corner street girl?
I don't think he'd mind with either one. haha Opie kills me man.
I dream, therefore I become.
  • #20
  • Nov 10, 2009 3:29pm Nov 10, 2009 3:29pm
Quoting Dopey
Hey, why don't we take up a collection and get Opie laid?
Wha...? I missed that one!

Ok, seriously then. That whole "journey of self discovery" crap is so cliche but in this case it's so very true. It didn't really start kicking in for me until about a year ago. My alcohol intake has dropped to zero. I mean it was never a huge problem or anything but I gradually realized that my after-work brewski or that glass or two of wine with dinner affected my concentration. It was never a conscious decision on my part to stop drinking. It just happened gradually over time. It's the weirdest damn thing to think about. Before I got into trading I used to be able to put it away with the best of them. Now, I hardly drink even socially.

As a side benefit, and all kidding aside here guys, sobriety does wonders for the sex life.
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