|10-15-2007, 11:19 AM||#1 (permalink)|
Join Date: May 2007
Money and Value
I have a question regarding money and value.
I am working on developing streams of income so that i can leave my job and become financially independent.
One stream I have been working on is Financial Spread Betting. I am not sure if it is legal in the US but in England you can bet money on the price movement of shares. Really it is like trading and not stictly gambling.
I have always been fascinated with the money markets and have developed a trading system that it quite profitable, albiet with small amounts (I never speculate with more than $20).
My question is this - I am fully aware of the importance of creating value and I believe that is fine to earn a fortune creating value for other people. However I don't really feel like I am creating value. All I am doing is simply creating money out of nothing. The only person really benefitting is me and I suppose the spread betting company. I don't really have a problem with it becuase the money I am speculating with is the money I have earned from creating value at the job I am in now. But I am curious as to peoples thougts. I am not really providing a service or product that creates massive value to others. I am simply speculating.
If I buy shares for $1 and sell them for $2 I have made money myself but what value have I created?
I am not saying it is bad I'd just be interested in other peoples thoughts.
|10-15-2007, 11:43 AM||#2 (permalink)|
Join Date: Apr 2007
Prices signal the value behind an object, that people generally hold in consensus. While there may be disagreements, these price signals are the backbone of the economy -- and in the case of shares, they reflect the overall comparative value of the company in terms of the market. Or rather, they reflect the expectations of value that consumer-investors have in relation to the company. This is a critical feedback loop for executives, investors, and others when viewed over time.
In short, when you buy a stock for $1 and sell it for $2, the value that you are creating is that you are acting as a valuator. Your worth is to drive the process that defines worth.
Hence, you saw something, knew it should be more valuable, and hence held it and sold it for more value.
It ain't glamorous. It ain't sexy. But, it leads to riches because its critical.
And, you're manifesting the rewards to those who have worked hard to make the company better, faster, stronger, etc, etc, etc.
Last edited by Asmoday; 10-15-2007 at 11:46 AM.
|10-15-2007, 09:58 PM||#3 (permalink)|
Join Date: Nov 2006
Just make sure to contribute your gifts (talent, knowledge, companionship etc) to humanity.
Do you have any dreams? Make them real.
Is there anything in the world you don't particularly enjoy? Go change it.
Use money as a tool to create more freedom for you to have more time to make the world a better place (one that is more YOU).
Last edited by norbert; 10-15-2007 at 10:01 PM.
|10-16-2007, 08:43 AM||#4 (permalink)|
Join Date: Oct 2007
If it works for you, go for it.
Since you are looking to build up streamS of income, this can just be one of them and for the other streams, you can build value.
And in fact, if you can make a decent amount of money from this, or rather, enough to be somewhat significant, this will allow you to plug more time into adding value to the world. More time with your kids, if you have them, more time thinking of an amazing business which gives something back, more positivity of mood so that you can greet people with a smile.
Look not just for tangible value here, this may offer value to others in less obvious ways.
|10-18-2007, 01:26 PM||#5 (permalink)|
Join Date: Oct 2007
Isn't it funny how we feel guilty if we get something too easily or as you say without value for someone else? You did say this was legal where you live, so there is no problem there. As for worth to someone-you do count you know. No one is asking anyone to be a martyr. If this is something you can make money one go ahead. And enjoy the money too.
|10-19-2007, 10:44 AM||#6 (permalink)|
Join Date: Apr 2007
for that dollar, you own a bit of a company, the value you create if the value created by that company.
If people weren't prepared to own little bits of companies then many companies would not exist and their value would never be realised.
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