oilydaytrader-you'll love this one:
http://business.timesonline.co.uk/t...ectors/banking_and_finance/article7089949.ece
http://business.timesonline.co.uk/t...ectors/banking_and_finance/article7089949.ece
Mention that you trade and you will definitely hear, "Ohhhh! I do hope you don't short sell!!!" with the compulsory scowl.
Yep, we're on the same page here, MrG... It's just a matter of definitions and I think people have to be aware of how they personally define "useless".OK, I will meet you half way:
I would say the process of risk-transferral is facilitated by speculators who warehouse risk, and so the increase in the "smooth running" of market operations is a product (added value) of speculators (amongst other things, like regulation etc).
heres my opinion about speculation,
in real world, there are many companies spending billions of dollar on research and development, does not matter for any product of services, the research, money spent could be fail or success. theyre speculating too.. in the end theyre trying to reach consumer and make some profit.
same thing as speculating on the market, trader spent lots of time and money and trying to make some profit from the market. yet the outcome probably sometimes have losses and winnings.
both are same, its just trader at market can see quicker outcome of profit or losses.
This view would mean that those who gamble on horse races are also no different.
Paul
I think of it like this...how is "speculation" in the financial markets any different from the guy who decideds to open a kebab shop or a café or for nike deciding to introduce a new shoe? You do your research into the area and market, make a plan, set up your business and trade. Speculation is no more than trying to profit from demand just like every other business. Your cost of sale is risk rather than grade z meat, coffee beans or leather and rubber. People may want your product and they may not. When you buy or sell you provided a service to somebody and assisted economic flow regardless of whether you yourself made a profit or not. Useful? The financial markets and systems are already in place and are the intergral part of how we all function. Therefor in my opinion speculaion is no less useful than another starbucks or tesco.
Why is it ?
Paul
This thread is hilarious. Isn't asking "is speculation useful?" on a website like T2W akin to asking "is Thanksgiving a bad thing" to a load of turkeys?