I only ask because it pricks mine, and I’m curious to learn how other people justify their speculation from an ethical standpoint. I'm really keen to get some discussion flowing here, as I think it’s a topic worth pursuing in earnest.
As speculators, we don't create anything; we neither produce goods nor render service. We profit through moving money back and forth at the right times. We don't participate in the market with intent to provide a service — we participate to take, to gain. It’s incredibly lopsided, wouldn't you agree?
Because we can make money speculating, does it follow that we should?
There are many other avenues we could pursue in life. Granted, they may not afford us the same freedoms, but is that any real reason to pursue speculation over, say, a day-job, where we actually earn a wage through service or provision to others?
Bear with me, but I see some parallels between currency speculation and a loveless marriage. If I entered into marriage without regard for my wife’s happiness and well-being, seeking only to gain personally from our arrangement, it simply wouldn't be right, would it? After all, I’m only in it for profit, to take and not to give. My gain is my focus. Needless to say, our marriage — like so many today — wouldn't last long.
Below are some common arguments that I've identified — and some I've dreamt up. Please forgive my bluntness and brevity in parts, particularly with regard to my responses. I view these as potential seeds for lengthier discussion and debate, and not as fully developed arguments or positions. They do, however, offer a glimpse into my thinking, and I hope, if nothing else, demonstrate a very strong desire to think further.
Some arguments and my responses:
“Speculators provide much-needed liquidity and price to the market. Therefore, they do create something of value.”
Do they? Is it a case of the more speculators the better? In any case, you don’t trade to provide liquidity to other market participants. You trade to profit, and profit only. Your motives are to your own end.
“I’m just taking what I'm entitled to from the big banks and hedge-funds that greedily manipulate the market and make billions of dollars anyway.”
You’re justifying your own speculation because the big, bad institutions “wronged you” and every other “little guy” first. Besides, you're nowhere near as greedy or manipulative as they are, so your market participation is justified (not).
“I’ve achieved mastery in a field where very few achieve long-term success. I've worked very hard for this.”
You've mastered the art of making money. That’s it. Nothing more.
“I use my profit and free time to help others who are not as fortunate as me.”
You don't need profit and free time to do that. Is that how you balance out the taking — by giving elsewhere? That still doesn't address the reason that you feel compelled to invest your time, energy and money to solely take in the first instance.
“Speculation has allowed me to grow as a person. I've developed discipline, patience, humility and perseverance.”
You've developed those attributes for the sake of making money — in order to become a singularly focused, money-making machine. Those qualities allow you to keep on taking, to interact effectively within the realms of the market. What good is personal growth if it ultimately serves only your own end? Has speculation taught you the value of giving, of putting others’ needs before your own, or of serving a greater purpose than your own?
“Speculating provides for my family, my children.”
There are a million other ways to provide for your family. You don't trade for your family. You trade because you want to trade. Maybe you want to escape the “rat-race”, play golf more often, or simply live a more comfortable life. Ultimately, you are the reason.
“At least I don't own a casino or a tobacco factory and profit from other people’s losses or addictions.”
We're talking about currency speculation, not gambling or nicotine. In any case, just because you perceive yourself to be “better” than somebody else, it doesn't mean that your actions any more justified. It’s very likely that you hold double standards in this regard.
JR
As speculators, we don't create anything; we neither produce goods nor render service. We profit through moving money back and forth at the right times. We don't participate in the market with intent to provide a service — we participate to take, to gain. It’s incredibly lopsided, wouldn't you agree?
Because we can make money speculating, does it follow that we should?
There are many other avenues we could pursue in life. Granted, they may not afford us the same freedoms, but is that any real reason to pursue speculation over, say, a day-job, where we actually earn a wage through service or provision to others?
Bear with me, but I see some parallels between currency speculation and a loveless marriage. If I entered into marriage without regard for my wife’s happiness and well-being, seeking only to gain personally from our arrangement, it simply wouldn't be right, would it? After all, I’m only in it for profit, to take and not to give. My gain is my focus. Needless to say, our marriage — like so many today — wouldn't last long.
Below are some common arguments that I've identified — and some I've dreamt up. Please forgive my bluntness and brevity in parts, particularly with regard to my responses. I view these as potential seeds for lengthier discussion and debate, and not as fully developed arguments or positions. They do, however, offer a glimpse into my thinking, and I hope, if nothing else, demonstrate a very strong desire to think further.
Some arguments and my responses:
“Speculators provide much-needed liquidity and price to the market. Therefore, they do create something of value.”
Do they? Is it a case of the more speculators the better? In any case, you don’t trade to provide liquidity to other market participants. You trade to profit, and profit only. Your motives are to your own end.
“I’m just taking what I'm entitled to from the big banks and hedge-funds that greedily manipulate the market and make billions of dollars anyway.”
You’re justifying your own speculation because the big, bad institutions “wronged you” and every other “little guy” first. Besides, you're nowhere near as greedy or manipulative as they are, so your market participation is justified (not).
“I’ve achieved mastery in a field where very few achieve long-term success. I've worked very hard for this.”
You've mastered the art of making money. That’s it. Nothing more.
“I use my profit and free time to help others who are not as fortunate as me.”
You don't need profit and free time to do that. Is that how you balance out the taking — by giving elsewhere? That still doesn't address the reason that you feel compelled to invest your time, energy and money to solely take in the first instance.
“Speculation has allowed me to grow as a person. I've developed discipline, patience, humility and perseverance.”
You've developed those attributes for the sake of making money — in order to become a singularly focused, money-making machine. Those qualities allow you to keep on taking, to interact effectively within the realms of the market. What good is personal growth if it ultimately serves only your own end? Has speculation taught you the value of giving, of putting others’ needs before your own, or of serving a greater purpose than your own?
“Speculating provides for my family, my children.”
There are a million other ways to provide for your family. You don't trade for your family. You trade because you want to trade. Maybe you want to escape the “rat-race”, play golf more often, or simply live a more comfortable life. Ultimately, you are the reason.
“At least I don't own a casino or a tobacco factory and profit from other people’s losses or addictions.”
We're talking about currency speculation, not gambling or nicotine. In any case, just because you perceive yourself to be “better” than somebody else, it doesn't mean that your actions any more justified. It’s very likely that you hold double standards in this regard.
JR
Be happy, be humble.
