# What is the contribution of traders to society?

**URL:** https://tradingqna.com/t/what-is-the-contribution-of-traders-to-society/140592
**Category:** Industry Insights
**Created:** [December 14, 2022, 10:12am UTC](https://tradingqna.com/t/what-is-the-contribution-of-traders-to-society/140592 "2022-12-14T10:12:49Z")
**Posts on this page:** 8
**Page:** 2

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### Author: ![Jason\_Castelino](https://tradingqna.com/user_avatar/tradingqna.com/jason_castelino/32/91357_2.png) [@Jason\_Castelino](https://tradingqna.com/u/Jason_Castelino)
#### Post date: [December 14, 2022, 12:52pm UTC](https://tradingqna.com/t/what-is-the-contribution-of-traders-to-society/140592/21 "2022-12-14T12:52:38Z")

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> [@ANKIT\_T](#):
>
> But it’s a fact.

Why create controversy? There are so many traders to pounce on us. Moreover there are successful traders too. But skill set wise I honestly feel it’s very difficult to be a trader. Anybody can be an average investor but to become even an average trader you need to be very skilful. That way. I honestly have huge respect for them.

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### Author: ![GB26](https://tradingqna.com/letter_avatar_proxy/v4/letter/g/c0e974/32.png) [@GB26](https://tradingqna.com/u/GB26)
#### Post date: [December 14, 2022, 12:53pm UTC](https://tradingqna.com/t/what-is-the-contribution-of-traders-to-society/140592/22 "2022-12-14T12:53:35Z")

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I see.

I am sure with your prior experience of small profits, you will do swing trading in a good way 👍

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### Author: ![GB26](https://tradingqna.com/letter_avatar_proxy/v4/letter/g/c0e974/32.png) [@GB26](https://tradingqna.com/u/GB26)
#### Post date: [December 14, 2022, 12:54pm UTC](https://tradingqna.com/t/what-is-the-contribution-of-traders-to-society/140592/23 "2022-12-14T12:54:52Z")

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> [@Jason\_Castelino](#):
>
> Anybody can be an average investor

True, as we can invest in many many ways, and over the course of time become average investors.

> [@Jason\_Castelino](#):
>
> to become even an average trader you need to be very skilful.

Double true, but investing experience helps with trading.

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### Author: ![ANKIT\_T](https://tradingqna.com/user_avatar/tradingqna.com/ankit_t/32/55042_2.png) [@ANKIT\_T](https://tradingqna.com/u/ANKIT_T)
#### Post date: [December 14, 2022, 12:56pm UTC](https://tradingqna.com/t/what-is-the-contribution-of-traders-to-society/140592/24 "2022-12-14T12:56:59Z")

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I hope so. I analysed my trades of past 2-3 years and realised that I can be a swing trader and increase my returns to double. I just need to be patient nothing else. I’m selecting right stocks but booking gains early.

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### Author: ![Jason\_Castelino](https://tradingqna.com/user_avatar/tradingqna.com/jason_castelino/32/91357_2.png) [@Jason\_Castelino](https://tradingqna.com/u/Jason_Castelino)
#### Post date: [December 14, 2022, 12:57pm UTC](https://tradingqna.com/t/what-is-the-contribution-of-traders-to-society/140592/25 "2022-12-14T12:57:31Z")

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> [@GB26](#):
>
> hedged positions too after a while,

Again No. I sell what’s overpriced. Buy what’s underpriced.  
In one of the posts I had mentioned I am short on nifty at 18700 level. Right now I feel it’s slightly overpriced. And I will remain short for as long as I think nifty valuation has come down. I may even square this off after 5 months at same level or after a year for even higher level. No stop losses or targets. None of my long term holdings are sold.

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### Author: ![GB26](https://tradingqna.com/letter_avatar_proxy/v4/letter/g/c0e974/32.png) [@GB26](https://tradingqna.com/u/GB26)
#### Post date: [December 14, 2022, 1:01pm UTC](https://tradingqna.com/t/what-is-the-contribution-of-traders-to-society/140592/26 "2022-12-14T13:01:03Z")

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One could call that trading, in the sense that the position is not extend for longer periods.

Of course, when starting there may not be a time period for which the position is taken and can be extended indefinitely.

And of course, we know if we are investing or trading.

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### Author: ![raoawesome](https://tradingqna.com/letter_avatar_proxy/v4/letter/r/dc4da7/32.png) [@raoawesome](https://tradingqna.com/u/raoawesome)
#### Post date: [December 14, 2022, 1:31pm UTC](https://tradingqna.com/t/what-is-the-contribution-of-traders-to-society/140592/27 "2022-12-14T13:31:41Z")

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> [@yolotrader](#):
>
> im always confused wht to say when some of my relatives ask me what do u traders do for society

Just say it’s a part time bussiness. This bussiness is similar to insurance bussiness where you take risk from investors and get paid accordingly.

Well technically F&O are more less like an insurance bussiness. You are just taking their risk and get paid accordingly based on market conditions. Look even before stock market, farmers back in those days used to strike contracts with merchants to sell grain at certain price in sometime future . It’s called as forwards market. Varsity has explained this well. F&O are financial products evolved from that but does the same function.

As a investor you provide money for a bussiness to grow in the economy. As trader you take on risk i.e some kinda insurance provider to the investor.

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### Author: ![Shivam\_Gupta](https://tradingqna.com/user_avatar/tradingqna.com/shivam_gupta/32/13659_2.png) [@Shivam\_Gupta](https://tradingqna.com/u/Shivam_Gupta)
#### Post date: [December 14, 2022, 2:11pm UTC](https://tradingqna.com/t/what-is-the-contribution-of-traders-to-society/140592/28 "2022-12-14T14:11:26Z")

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They are paying a lot of taxes (direct and indirect) which helps in running security exchanges, functioning SEBI etc.  
They generate a lot of brokerage so that non traders/investors can enjoy broker’s services at very low price.

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