What do you do for a living? "I'm a trader"

©Trading Research - www.trading-research.com - January 2015 - Author: Luca Ciolini
Trading for a living especially when you live in places where this profession is very uncommon, if even exist, can be sometimes pretty difficult and unpleasant to sustain in social relationships.
The trader in the common imagination is easily associated with the gambler, the one who wants to make the easy money..... he is usually not frowned upon, he is looked at least with distrust, may be secretly envied especially if he shows good results, but certainly not commonly approved.
This thing, you could say has little to do with my trading, may be yes, however social approval is often an aspect that can affect our "self image" and if it does it will also have negative effects on our trading performance.
Without wanting to convince everyone not directly involved in this business that their ideas are incorrect, it is however important that we ourselves are truly convinced that our profession is like any other, and that therefore it deserves all the due respect because it also have a social utility.

Take a look at this short video that nicely describes what we are talking about:
sometimes it is useless trying to explain ... but that's actually what a daytrader life is ..... and there's also a lot more, we have a social utility and individual utility which then turns back in social utility again;

The daytrader actually does:
1) Provide liquidity: the liquidity provided by intraday traders is essential for other traders, institutions and companies that have to hedge against the risk of currency or raw material fluctuations. All these subjects when they have to make market transactions they can find adequate liquidity that means good prices for large quantities; a liquid market is still useful for everyone even for those who do not work directly with it, in fact greater liquidity normally implies greater stability in prices that is an advantage for everybody.
2) Create and supports other businesses: day traders create a lot of induced labor, starting from the exchange structures to all brokerage and clearing firms, to all service providers, price feed, news feed, training, coaching, charting etc ..
3) Redistribute wealth: the revenues for the country where the exchange is established (those from taxation on individual transactions) and those of the country where the trader lives (taxation on earnings) go into the State coffers and then back into the real economy with positive effect when the rulers makes good use of it....
In addition to these benefits for the community, a professional trader has definitely to be proud of his profession for a number of reasons:
1) a profitable trader is part of an elite group of top performers that statistically represents a very small percentage of 2-3% of people who consistently extract profits from the market, and even during bad times you should still be aware that you are doing something that most people will never be able to do so it is justified the biggest effort to stay and remain in the "club"
2) to be a top performer or working to get there, must, once again make us very proud of ourselves, beside the fact of succeeding or not, or at a more or less significant level, constantly performing in a high competitive environment (perfectly comparable to the top athletes) requires to continually develop great capabilities, skills, technical research, preparation and introspective analysis that only very few ever come close to do in other professions or any other environment in general.
3) The trading profession is by definition synonymous of freedom, you trade what you want, from anywhere in the world, with the time schedule that you choose, your are your own boss, etc ...; then it actually turns out to be a lot of hard work, hours of study and research, evaluation of results, managing hard times etc, but actually no one, at any time forces you to do anything, the market is always there in a day, in a week, in a month....
In conclusion I can say that it is important not giving too much consideration to other people's approval, unfortunately, nowadays everyone is evaluated by conformists stereotypes, and mainly by his wealth; if you will be a very profitable trader and you will show your wealth you may be also "approved", if despite your good results you will keep a lower profile may be less, but what is important is that your remember yourself always all the above, and focus on your continuous improvement and the great performance it's just a consequence.
good trading.