Day Traders Make Society Better! Here’s How. (Stock Trading 101)


Yes, we as day traders,
we as swing traders, we make society better. How so? Well, I’m gonna get to that in a second. Maybe you’re thinking and rightfully so what does this have to do with, why you even doing this video? Well, there is a very
apparent belief out there among some people, maybe
you’re in this camp, and I respect your opinion. All I ask is give me a chance to explain how us as day traders and swing traders do make society better. We do contribute to society, and hopefully I can change your mind and maybe open up your eyes a little bit, provide a little bit more clarity to you, but I just want to start this off by reading a couple of comments I’ve got, and there have been many other ones, but now what I need to do
is just get a video on place where I can direct these people to because all joking aside,
yeah, we as traders, we truly do help society, assuming you like sweet old little ladies. So if you like sweet old little ladies, then I think we can all agree that we do help society. So let me get to these comments. So Bill says, “And this is
why I work for a living, “actually producing something
tangible to earn a paycheck. “I sleep soundly and know
I’ve contributed to society. “So keep spinning that
roulette wheel day traders,” and then this person says,
“How would you describe “your contribution to society if any? “PS, not trying to be snarky or anything.” So that is exactly what I’m gonna do. Let’s first start with one basic premise, and I’m not trying to
insult your intelligence, but this is truly the foundation from which this is all built, and like I said, this is
just good old economics 101, but if you have a number of people, and then prices, what’s the
correlation between this? Well, right there, meaning the more people that
are in a certain market, the more people that are involved, well, the more pricing
efficiency that’s gonna happen. The better pricing
structure can occur, right? I mean if you only have
one person in the market, okay, I mean that they
are basically the market. They will tell you what something is worth because, well, they’re the only person. There is no competition. There’s nothing, but the more people you bring to it, the higher and higher
the pricing efficiency, prices all become just because it becomes a
more structured environment. So assuming we can agree on
that basic economic principle, let’s think about how day
traders do contribute to society. So let’s set up a little store, and like I said, I mentioned
sweet old little ladies. So over here we have. So there’s her nice dress. She’s got a nice purse there, and we have grandma. Grandma has been smart. Grandma has been saving her whole life. She’s been putting
money into IRAs or 401ks or just you know any sort of
you know brokerage account, but she’s been saving. She’s been using the stock
market as an investment tool to grow her wealth, and at some point in her life, grandma, well, she’s
retired, rightfully so. Maybe she’s traveling the world. Maybe she’s sitting at home crocheting with a kitten on her lap. I don’t know what she’s doing,
but she has worked hard. She has contributed. She has done a lot. She has been smart. She saved. She planned, and over decades and decades and decades, she is a, you know, accumulated stocks, but now at this time in her
life because she is retired, she’s gonna need some money
every now and then, right? Nothing fancy here, nothing complicated, but she’s gonna need money. How does she get that money? Well, she’s gonna need to sell some stock. So when she goes out there now, if you’re brand-new to the markets, I don’t mean she has to start knocking on people’s doors and saying, “Excuse me, would you
like to buy some Tesla’s.” That’s not, I’m talking about
she just needs to sell it through her online broker
and all that sort of stuff or her financial planner. Point being, she needs to sell that stock. So let’s say that she goes out there, and this is what she sees. Two other people that are
involved in the market. So in this situation, let’s
just wipe away day traders. Let’s wipe away swing traders. That’s gonna eliminate lots
and lots of people out there. Let’s eliminate the institutional traders and all that sort of stuff. Let’s just get rid of them, right, because they’re not
contributing to society. They’re just pressing buttons online and just trading pieces
of paper back and forth. I mean they’re not really doing anything. So you eliminate all them. So what do you have left? Well, you have a bunch of other grandmas. You have maybe some other
long-term investors. So you’re gonna have. So you have that situation. Is grandma gonna be able to
get the best possible price? Well, the best possible
price compared to what? Compared to this. Let’s now introduce some day traders. Let’s introduce some swing traders, Now we have this situation. So which of those do you
think is gonna help grandma get the best price for her stock? Again, she needs that money, and her best scenario is, well, I’d like to get as much money as possible for this stock, and how do you get as
much money as possible? Well, by having a lot
of people in the market. The more people in the market, the better, the more efficient it becomes. The better pricing
opportunity that can occur, and that’s the fascinating
thing about this online trading is the access it gives everybody, and if you ever heard the
term of liquid markets, that means the ability at which
you can transform something from an asset to actually cash. So the most liquid asset is cash because, well, it’s already cash. The second liquid, most liquid, would be like a check, right? If somebody writes you a personal check, well, you still have to go
and transfer and convert that check into cash, so
assuming it’s not gonna bounce, but that would be another
very very very liquid thing where you can take it
immediately, convert it to cash. On the other end of the
spectrum, real estate, not a super liquid asset because you said, “I want cash from this house.” Well, you’re gonna have to sit there maybe weeks, maybe months,
depending on the time, it could be years before you are able to convert that house into cash. The same with a stock. A stock in and of itself
is just a piece of paper. There’s no cash associated with it, but the process by which
you convert it to cash is the liquidity, and
the more people you have in the market, the more liquid it becomes, and day traders and
swing traders help out. They are pouring, they
are putting their money. For all I know today when I trade it and I bought some stock, maybe it was grandma saying, “Oh wow, “I’m really gonna get that price? “Okay, yeah, I’ll sell for that price,” and I bought it from her. So I helped out grandma. I mean I helped her get a better price than if I had not been there because maybe the other grandma out there was saying, “You know what? “No, I’d only be willing
to pay 50 cents less than what I was willing to pay,” but because, sorry, grandma,
you and me as a competitor, I was willing to buy stock
higher than what you were. Therefore, this grandma was
able to get a better exit price so which you can go and
retire nice and comfortably. So to say that day traders and all that just don’t contribute to society. We don’t produce anything,
that’s just not true. We are making the market
that much more liquid, and a liquid market helps those in many different situations. I mean I could make the argument from a business perspective. I mean when markets or when
businesses can go out there and raise capital via the markets, well, then they can put
more investment into R&D, research and development, and come out with even more cool products,
but I didn’t take that angle. I took it from you know the
sweet old little lady grandma who’s retired and wants
the best possible price for her stock so that
she can just continue to live her life, do
whatever she wants to do. Maybe she needs some more
crochet material, fantastic. Now because of day
traders and swing traders she can get an even better
price for that stock. So that is how, yeah, traders, we do make society better. We do improve. Now if your grandma with
no savings, no stock because you spent money
as fast as it came in, I mean I’m not sure I can, I mean I can shovel
that grandma’s driveway. I’d be happy to do that, but as far as the stock
market in this example, probably doesn’t quite play out, but you get the point
that I’m trying to make. So hoping this helps
clear out and clear up the misconception that is
out there among some people, and that way you can have a better idea. Yeah, all of us as traders,
the more people in the market, the better because the
more liquid it becomes, and that is just a good
thing for everybody. So if you enjoyed this
video, hit that like button. Leave a comment down below. Have you ever had anybody look at you and imply that you’re like, (puffs) “You see, what
do you do for society? “You sit at home and
your underwear all day “in your basement and press buttons. “What are you doing?” Have you ever had anybody accuse
you of anything like that? I’d love to hear any stories like that. That’d be pretty entertaining, or if you’ve just any
questions in general, leave those comments down below, but if you want me to keep
making videos like this and you enjoyed it, hit that like button. Check out the channel as a whole. Hopefully you decide to subscribe. Thanks for hanging out. First off, thanks so much for
watching the entire video. Real quick before you
go, I want to invite you to a live webinar, web
class, training, workshop, online event, whatever
you want to call it, but it will be me live revealing
to you what I’ve discovered that has allowed me to transform myself from being an employee
to being my own boss, including how I had only one losing day out of 73 days in total. I’m gonna cover three
keys that have helped me unlock profitable consistency
within the markets. The first key is super-weird, but in a productive type of way. The second key is super awesome because it quite literally
is wired into our DNA as humans making it very easy to use, but in a cruel way this becomes
a pitfall for many traders. I’ll explain it all though, including how to avoid the
pitfall that it creates for some, and yeah, the third key when you hear it sounds way too good to
be true, but it’s not, and I’ll show you how it all works. Then at the end, I open it up for a question-and-answer session that is, again, totally live. Even if you can’t make the live session, please still sign up
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27 Comments

  1. Andre Corniel said:

    Thanks for the insight from these videos bro, I like them! I also try to teach this stuff on my YouTube channel too 👍🔥💰

    February 28, 2020
    Reply
  2. Nathan Silva said:

    These people are full of s*** they don't tell you need a fat bank account channels are full of s*** I want to give you five hundred bucks let me see if you could do what you say you could do a bunch of bulshit you need a fat bank account

    February 28, 2020
    Reply
  3. Bass Drip NCS said:

    amazingly epic

    February 28, 2020
    Reply
  4. Aces said:

    Eh. I don’t feel guilty about day trading. I’m conducting legal business transactions and then donating some of the profits to a charity of my choice while providing for my family. That how I contribute as a day trader ..

    February 28, 2020
    Reply
  5. Abby Lasiter said:

    Clay, your videos are informative and helpful. Trading is my passion and a joy and you have been easy to watch and educational. That being said this is weak reasoning. There are enough investors to provide a liquid market for grandma in this digital age. That is not how we make society better. The only way a day trader makes society better is to work a meaningful job on the side or donate profits to a worthy cause or movement. The assertion that the action of trading is helpful to larger society has no merit. You can and other traders can pat yourselves on the back but I won’t.

    February 28, 2020
    Reply
  6. Big Ballah said:

    Day traders provide liquidity for the market! Thanks Clay for getting back to me on the last video.

    February 28, 2020
    Reply
  7. The Sapien said:

    I'm not sure if lots of liquidity makes prices higher or gives grandma better deals, necessarily. Liquidity can make supply seem infinite, so the price might not even be following supply and demand, instead just following speculation and sentiment. I imagine too that liquid markets can easily crash in shorter periods of time, like now, for example.
    Also, I don't think you could had made the argument from the other angle you mentioned about how investors help R&D. Day traders are NOT investors. A company cannot count on those funds in the future beyond a single day from an "investment" from a day trader. Things like R&D require commitment and more solid projections of future funds.
    I personally think that investors are great for markets and mid to long term traders do help markets. However, day traders, not so much.

    February 28, 2020
    Reply
  8. lkcheat said:

    On a more global scale, you can employ people in your business, you dont need day care for your kids, and you dont get laid off from your job and collect unemployment…

    February 28, 2020
    Reply
  9. Ajay K said:

    Not accused till now, as I am still not as successful as you Clay.

    Thanks for your efforts for making such videos. Please keep up.

    February 28, 2020
    Reply
  10. Ssg9 Ssg9 said:

    Successful traders pay a lot of taxes, eh Clay????

    February 28, 2020
    Reply
  11. AdamMac Trading said:

    clearly the type of people that say this kind of BS don't understand or even want to understand what we do, typically it's either they are scared or jealous.

    February 28, 2020
    Reply
  12. Jerry Nix said:

    Kind of sounds like someone is a little jealous that they aren't a day trader

    February 28, 2020
    Reply
  13. Darlan - Trader and Risk Management said:

    I wish the U.S had more traders on Black Thursday, special buys.

    February 28, 2020
    Reply
  14. Carlos Gonzales said:

    Is it possible for your stock to be bought/sell if you’re selling it..? Not sure if that makes sense

    February 28, 2020
    Reply
  15. RPGmario64 said:

    You should make a video explaining the speculation tax.

    February 29, 2020
    Reply
  16. Reggie Cyde said:

    Successful traders earn more and spend more. Contributing to both healthy economy, labour and taxes.

    February 29, 2020
    Reply
  17. ajpend said:

    Watch a Zeitgeist video instead.

    February 29, 2020
    Reply
  18. ajpend said:

    You sound like you think material wealth is infinite.

    February 29, 2020
    Reply
  19. ajpend said:

    If all 'traders' stopped trading, you'd have to provide a good or service.

    February 29, 2020
    Reply
  20. ajpend said:

    This guy admits at the end that trading is an economy of traders.

    February 29, 2020
    Reply
  21. ncbookz.com llc said:

    I almost didn't watch this video, because of the win/win vs win/lose concept in gambling, but glad I watched the video. Something new to think on. Even day traders who make a profit will still need to put their profit in long term investments, so the conclusion is both are needed to achieve the win/win scenario.

    February 29, 2020
    Reply
  22. Homercon said:

    Plain and simple…the economy needs consumers. Traders still need to pay bills, rent/mortgages, utilities, food, water, etc. And when the plumbing needs work? You call a plumber. When your vehicle needs work, you're probably going to take it in for service, etc etc I could go on forever giving examples. Anyone who says traders dont contribute simply doesn't understand the most basic economic principles.

    February 29, 2020
    Reply
  23. Jacob Voigt said:

    I have that shirt too

    February 29, 2020
    Reply
  24. ajpend said:

    Summary: day traders provide value to other day traders.

    February 29, 2020
    Reply
  25. spr822 said:

    Understanding how money works.

    March 1, 2020
    Reply
  26. Calvin Helms said:

    I just don’t talk about my trading. Not even on my gains and especially my losses. Most people either think your rich or think your gambling. Good talk never looked at it that way

    March 1, 2020
    Reply
  27. ajpend said:

    Thanks for the opinion.

    March 1, 2020
    Reply

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