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Originally Posted by Beingist  Okay, this is the only thing that I've seen that comes close to what a trader might offer in the way of a benefit to society.
However, traders make money on others' losses. Hence, while spending power might increase for that guy making money, it decreases for the one losing it. That trade off would then negate the benefit.
Maybe I need to be more specific. I'm talking specifically about securities trading.
However, to respond to your response, as an apple farmer, I already provide a benefit to society by producing food that it eats. Now, when you say that a trader is going to deliver my apples to China, he's not functioning as a trader, then, but as a delivery service. That service is the benefit, not the trade itself.
Ultimately, what I'm trying to understand why the world even needs securities trading, so as to gather what the problem would really be if a tax were instituted on every trade. It would obviously lower trade volume, but so what? It might put day traders out of business, but if they are of no benefit to society as a whole, then so what? |
OK I've been thinking about this for a few days because I don't want any subconcious negative beliefs about my chosen business model derailing my plans. I've also consulted with some other full time one man band traders who have helped put it into some perspective. Here are the benefits of a full time spculatiuve trader to society - please debunk/argue against them as much as you can:
1. Private investors,
businesses and a whole range of people and organisations
rely on liquidity in the financial markets and many people would lose a hell of a lot of money if liquidity was to dramatically reduce as this would mean higher spreads (cost of doing business) and less efficient pricing. This goes for currency values, commodity prices and of course shares in companies that people invest in either actively or passively. I provide some of that liquidity
2. Tax revenue - if I make a lot of money I will obviously pay a lot of tax on it.
3. Should you end up making trading your sole income, you are effectively freeing up a "real world job" for someone else to make a living from, thus reducing unemployment.
4. You are, if you are trading via ECN into the true Interbank market, literally taking back the money from the 1% they are protesting(banks, corps etc) and giving it back to the 99%(yourself). I'm still in the '99%'
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However, traders make money on others' losses. Hence, while spending power might increase for that guy making money, it decreases for the one losing it. That trade off would then negate the benefit.
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The one losing it is the '1% evil bank'
So I take money from the '1%', I don't take a job which means someone else can have it, I don't claim any welfare, I pay tax and I provide liquidity into a system that many people rely on for personal, business and retirement reasons.
I was OK with the ethics of becoming a full time trader before but now I'm absolutely 150% OK with it so this has been quite helpful for my business. Thank you
