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>A fine post, but I'm not sure I buy into all of it. Even in a zero-sum
>game (not quite zero), there is more to this then just taking someone
>elses money. It is just plain bartering.
>
>When you go to the store, the owner wants your money. But he must give
>you something YOU WANT in return. Now if you choose badly in your
>purchase, it is you who took money from you, not the person who sold it
>to you. We have full control of our resources, and the decisions we make
>directly affect our bottom line.
We only have "full control of our resources" when both sides of the
transaction have complete information. The value of unknown information in
a case like this is the difference between what the agreed upon price is
and what the price would have been had both sides known it. OK, sounds a
little confusing, but I think you understand my meaning.
>We you think about it, once all this trading has done its good for the
>commercial markets, the final product WILL be consumed...
>
>We look at just the middle, since we are middlepersons, yet we are the
>conveyor belts for product to go from point A to point B.
Not exactly ... the middlepersons are the people who actually perform a
function in conveying the commodity. I wouldn't consider a speculator who
trades in and out of the commodity a middleperson in the commercial sense
of the word. However, all traders perform a function in that they provide
liquidity in commerce. The wheat could get from the field to the grain
elevator to Pillsbury without the guy who held a futures contract on it for
two days in August.
>As for TRADE SECRETS, there aren't any. All information is readily
>available (usually at the cost of time or money),
Ah, but how MUCH time and money?
>... Even when we are making money
>with trading, we have information that is resaleable. Why let it sit
>dormant when it could be producing income?
>
>If you sold information that made you $1000 a day in trading, the
>question is why sell it? Because while you make $1000 a day trading, you
>make $1000 a day or more in selling that which is making you $1000 a day
>in trading!
Since research is going on all the time, and little information is
undiscoverable (is that a real word?), information is a depreciating asset!
Another reason you want to sell it now is that it will be worth less
tomorrow.
I found both articles very interesting and enjoyable (I'm one of those
newbies you keep talking about).
Roger
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