In Reality Trading is just Stealing. Right?

Yes, mistakes have to happen, while failing to learn from them is just stupidity.

My wider point is that buying in an uptrend is never a mistake, even if price falls. Sure, poor tactics could be applied, such as chasing price to enter at a high, or setting the stop-loss too tight, but a loss resulting from buying in an uptrend does not make the buy decision a mistake.

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Never thought of it that way, it’s an interesting point of view.
I would say no though - I think of stealing as taking from an unwilling person. The people that are also trading are depositing their own money knowing the risk, so if they lose it, it was a risk than they chose to take versus something like having your wallet stolen.

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Hey who are you,you are awesome :v:

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That means I am right?

I’m happy to steal from those big, fat, greedy investment bankers.

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In my opinion, no it doesn’t mean that. There are actually two issues here.

  • Does one trader’s gain mean another trader’s loss.
  • Is this stealing.

Well I think we can dismiss the second of these because all parties enter their positions voluntarily and are aware that they may lose and are willing to take that risk. This is not stealing. It is just settling gambling positions.

Regarding the first issue. As has been explained already, in most cases retail trades are counterpartied by the broker. There is no actual cash trade involved (otherwise you would have to pay and receive bank transfers to your foreign currency accounts), it is purely a view on exchange rate direction.

If this market was indeed a zero-sum game then every gain would be matched by an equal and opposite loss (ignoring fees, spreads, etc). But this is not entirely correct. As mentioned in the video that @Trendswithbenefits offered, in some cases, if the broker’s own exposure grows too large then they will hedge some of it in the interbank market. If we consider the entire interbank market then we are talking about a huge sea of currencies that are sloshing around the globe in trillions of units every day. This is then even larger if you add onto that the volumes of futures and options that are bets on rates extending out to settlement dates well into the future.

You cannot say that the interbank market is zero sum because there are multitudes of reasons why companies, institutions and individuals buy/sell currencies that have nothing to do with speculation on the future direction of exchange rates.

Let’s say an EU car maker buys components from China priced in USD. He buys the dollars with Euros at the current rate, receives the components, builds his cars and sells them at a profit. It is irrelevant what happens to the EURUSD rate after his transaction.

Equally, not all retail traders are in the minnow 100-1000 USD bracket. If a broker has a retail client that trades well, large, and consistently makes significant money then he may well hedge the positions routinely, depending on his overall exposure.

Do you actually have a moral problem with trading or is this just a hypothetical question? I wouldn’t worry about the morality of retail trading. It is generally monitored by authorities and is no different to gambling on horses, dogs, elections or any other, sometimes bizarre, forms of speculative risk taking. :smiley: :+1:

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Me: I will become rich by trading and then buy house on mars.
My brain: yo dude but where is the profit coming from?

This is how came up with this question.

These are nothing more than a theory.

If you are willing to learn something and have persistence, you can make money out of it.
The fact is that millions of people make money on the stock market every day.
The real question is: do you earn or lose?
It’s up to you.
It’s up to you.

image

One day you will write a textbook on how to write a textbook

It is not stealing for sure, there is a thin line between trading too much and trading in moderation. Traders need to figure out a way to trade efficiently. Keep your mind open to new perspectives. It is a zero sum game, some win and some lose.

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I don’t understand this.

Put it simply you really like writing a lot don’t you :slight_smile:

Thx I see people are agreeing with my thoughts too

If you watch the YouTube show billion dollar day, they require the other party to lose because of so many lots and they do tricks to not be seen taking profit

No, i just like to explain my thoughts thoroughly.

But since this seems to bother you, you can take full credit for the result that this will be my last post ever on this forum.

Good luck with your stealing…

Ok Sorry it was joke why are you mad at a pineapple that try to make people laugh
plz don’t go world needs you, you can save everyone! Lord Sovo S

This is how trading operates. This principle is effective. Selling when prices are expected to fall and buying when prices are expected to rise.

Although the word ‘stealing’ isn’t appropriate, yes, the explanation is right. Forex is a zero-sum game. Someone else’s loss means someone else’s profit. The net total being zero.

Don’t trade with an angry mind! It will create your revenge mindset; and end of the day it’ll destroy your trading plan!

Well, also, people buy and sell things all the time. It is stealing to buy 200 bags of flour for $200 then sell each of them individually for $2.00? Buy low, sell high. That’s a bet the seller is taking. What if the news suddenly says that flour is bad for the health? Demand goes down, and you’d have to sell each bag of flour for $0.50 just to get rid of it. That would be an unprofitable trade.

There’s no morality in the equation.