What is a trader?

tradersboredom, I agree with all you said, except for one thing - winning traders, speculators, hedge funds and active mututal funds, do not get paid for providing liquidity to the markets. Because losing traders also provide liquidity but they don't get anything, only losses...
 
Quote from neutrino:


Since traders, hedge funds, active mutual funds etc. do not create any value...
More...


We do create value.

As was pointed out...and I think this is the best answer...we provide capital at risk in order to create a market.

The value derives from the market, of which we are all participants and contributors.
 
Quote from lindq:

We do create value.

As was pointed out...and I think this is the best answer...we provide capital at risk in order to create a market.

The value derives from the market, of which we are all participants and contributors.
More...
No, it's a zero sum game, so no value is created.

If there is someone with money to invest, and someone who needs money to spend, they both meet on the stock exchange and make a deal. When enough people meet a fair price is achieved on the auction principle. The buyer of stock receives dividends from the company whose stock he has bought. This is his compensation and this is not a zero sum game as long as the company is creating value in the real economy and distributes its profits as dividends.

Any short-term speculative activity however represents bets on the price of the stock and is a zero sum game. Winners simply steal the money from the losers.
 
best description for a trader: "daddy makes his millions by taking crumbs from other people's cakes"

can you name the movie? no cheating with google plz!
 
scalpers take crumbs.


Quote from shortie:

best description for a trader: "daddy makes his millions by taking crumbs from other people's cakes"

can you name the movie? no cheating with google plz!
More...
 
Quote from stock_trad3r:

A trader isn't..

someone like me or else they would know how to make money in the stock market
More...

Then why the f**k is your name 'stock trad3r' ????

Gotta go, thanks for your dough.

Werd

:p
 
Quote from shortie:

best description for a trader: "daddy makes his millions by taking crumbs from other people's cakes"

can you name the movie? no cheating with google plz!
More...

let's face it: traders are just rats picking up crumbs.
 
You must log in or register to reply here.
Back
Top