Why Atlas Shrugged is making me a better trader
I was writing a reply to Joe and I decided to instead make it a post, as it is something I have been thinking about with regards to trading and Atlas Shrugged:
Hi Joe, yes I think you’ll find it interesting. I think it also relates to trading - the earned and unearned wealth. You know, a lot of people can get lucky with the stock market and I kind of think of that as unearned wealth. Also, a lot of people cheat or manipulate - this is also unearned wealth. But then there are those who work hard, and fair, and I think money taken from the stock market in this way is earned. As to its usefulness in society - I think the book has given me faith that money earned through hard honest work like this is useful in society because a free market rewards those who provide something of value to society. That’s what is so great about capitalism - it rewards those who provide something of use to society. Capitalism fuels progress and productive achievement. So just the fact that you make money from something with hard honest work means that it is useful.
In such a competitive and wide-ranging thing as the stock market, I think providing liquidity and a fair price is of great use. It keeps the wheels and gears of capitalism turning smoothly. And that is one of the most important things in the world, if you are a believer in capitalism.
Also, one thing the book talks about is that you have to work for yourself and not expect charity or someone to give it to you for nothing. The same goes with trading - you can’t expect someone else to do the work for you. You won’t make it as a trader if you rely on someone else for stock picks. Or for anything. The only way to make it is to do it yourself.
