There is some negativity in society about being a trader, in this post I would like to explain the positive side of being a trader and why a trader should be proud of what they do.
Some say “A trader doesn’t create or produce anything”.
That is wrong.
In the history of civilization it was the traders who bought and sold goods across markets creating commerce and economies. Historically goods such as silk, spices, olive oil, gems, dyes, salt, and many other goods were traded going back to the ancient times of the Phoenicians and Babylonians. These traders from thousands of years ago laid the foundation for modern economic systems and capitalism to evolve. The first traders built the modern world of commerce and finance.
Modern traders trade digital assets but these assets are tied to real companies, commodities, and currencies. When people put gasoline in their car, drink orange juice with their breakfast, or buy gold jewelry they are participating in the last stop for markets of traded commodities. When a person is employed by a publicly traded company or buys the products and services from a publicly listed company they are part of the trader’s world participating at the ground level of the business of the stock being traded.
Traders are very important parts of the financial ecosystem.
- A trader creates trading systems.
- A trader creates liquidity in a market. They tighten big/ask spreads.
- They provide capital to purchase an asset when an investor wants out.
- They provide capital to companies as they launch their stocks publicly with initial public offerings.
- Traders buy the dips in price that investors can’t buy because they are buying and holding stocks.
- Traders have created many charities from their capital to give back to the less fortunate.
- Rich traders donate heavily to political campaigns.
- Professional money managers have made many clients rich through trading their capital in a hedge fund.
- Successful traders have created a great living for their families.
- Good trading mentors teach their students a lot about their self, and it can be life changing.
Traders get blamed many times when a market crashes. “It’s just those speculators driving down market prices!” But they are never thanked for buying into a market crash and stopping a further plunge. Short sellers are many times demonized for causing the market to fall with no understanding that they have to buy their short positions back later and the two transactions are equal with one sell and one buy. Traders take risks and nothing is guaranteed to work. If trading was easy money then everyone would do it.
Here are fifteen reasons to be proud to be a trader:
- You have the courage to take risks few ever will.
- Trading is just a business like any other if done correctly. A trader should be proud to be an entrepreneur.
- A trader can profit from trading currencies not just be a victim of the depreciation of currencies buying power.
- As a trader in stocks you rise above the employee quadrant and operate at the level of the owner of a business trading equity.
- A trader can profit from company earnings and sales not just a paycheck.
- A profitable trader is like an elite athlete outperforming others on the field of play to score more points than they give up.
- A trader puts his money where is mouth is.
- You have entered an industry with unlimited upside earnings potential.
- You are willing to learn about your weaknesses of emotions, ego, and self control.
- You have enough confidence to take the other side of a trade.
- You are willing to do the work that most people just will not do.
- Others think you are a gambler but you know you are designing your own casino.
- In a world of talkers you’re a doer.
- In a world of starters you’re a finisher.
- In a world of critics you’re a creator.
“The symbol of all relationships among such men, the moral symbol of respect for human beings, is the trader. We, who live by values, not by loot, are traders, both in matter and in spirit. A trader is a man who earns what he gets and does not give or take the undeserved.” – Ayn Rand
Everyone is a trader.
Some people trade time for a paycheck.
Some trade tuition for a degree.
Some trade risk for profits.
Some trade happiness for security.
Some trade principles for politics.
Some trade ethics for cash.
Everyone trades, few understand this.