Is Trading Ethical?

Discussion in 'Psychology' started by toc, Sep 7, 2006.

  1. toc


    There is a saying "Hard Earned Money stays and grows with you"

    Trading can range from 1 minutes to 1 hours a day for many and others in the similar range. Rest of the time you are just watching the market and waiting for the signal. Is that why 80% of traders lose in the first year and the number grows to 90% by the second year end.

    Is there some metaphysical connection between the sayings of the scriptures and actual happenings in life.

    Fact: How many millionaires we see out of trading but see quite a few out of real world brick-and-mortar type establishments.
    SBA fact does however say that 50% of new businesses fail in the first year, but that's still better than trading.
  2. Risk takers, who provide the market places for the rest of the world are hardly "unethical" IMO. Traders only make money two ways: Providing liquid markets, and seeking out and correcting disparities in matter what type of trading you do...that's all it boils down to.

    Does a storekeeper not take a risk when he pays up front for groceries (taking a risk), so he can then make a profit from the sale of these groceries.? And yet, 90% of all business ventures, whether it's trading or anything else for that matter. Futures trading began as an agricultural necessity back a couple hundred years ago.

    The "big" money is usually in the markets overall (and real estate)...why do you think "they" push so hard for Cap Gains relief?



    And BTW (as posted a zillion times here)...We lose around 50% the first year, fewer lost if they are more "dedicated" to their training. This is a real job/career/business, and is not for everyone.
  3. toc


    Trading is actually really difficult and that is why even 80%+ of the mutual fund managers are not able to beat S&P500 year after year, no matter what size portfolio they are running.

    These are guys who acutally are Ivy League graduates and more importantly with lots for ambition and mental energy in them, and they do give 10+ hours a day to their trading and market analysis activities.

    In the end, success in life is a very philosophical topic, be it come from job, business, trading, lottery or plain out and out robbery or bump into a load of cash stored up.
  4. From your post and the thread title 'Is trading ethical' I think I get what you mean. The rational explanations are given previously, such as providing liquidity etc, but from another angle, I suggest you can try giving donations.
  5. Whoever said that is just expressing their opinion, and we all know what they say about opinions. :p

    Yes trading is ethical. A trader is an entrepreneur in every way.

    "entrepreneur " defined:

    1. Innovator. One who recognizes opportunities and organizes resources to take advantage of the opportunity.

    2. One who assumes the financial risk of the initiation, operation, and management of a given business or undertaking

    3. Someone who attempts to profit by risk and initiative.
  6. ddunbar

    ddunbar Guest

    "If it ain't against the law, it's ethical."
  7. Is adding liquidity more "ethical" than taking liquidity?
  8. what
  9. Huh? What does a failure/success rate have to do with ethics? As far as hard earned I've made from trading is the hardest, "easy money", I've ever made. The actual time frame of the trade has little to do with the degree of difficulty that went in to the trade prior to the actual execution.
  10. He speaks the truth. One of my stocks is up 3 points, and I only looked at the chart for like.. two, maybe five minutes max. After a trader makes the trade, its all about watching other people make your money grow for you :D .
    #10     Sep 7, 2006