Trading: Equality in the Stock Market?

Introduction: Embracing Equality in Trading

In this blog post, I’ll delve into the world of stock and options trading and explore why it captivates me. I come from an arts background, where success often hinges on factors beyond one’s control. Because of that, I find solace in how the markets work. Unlike artistic pursuits, where identical performances can yield vastly different outcomes, trading offers a level playing field (arguably). In this article, I’ll highlight how trading allows for equal opportunities and a desirable pay structure compared to the arts.

Equality in Stock Trading… Really?

Trading, regardless of the trader’s financial resources, offers an equal playing field. Admittedly, big money and small money traders will have different strategies, but the market itself remains the same (excluding dark pools). This is more about retail traders and how they relate to one another.

If two traders execute the exact same trade – same entry and exit points, same strike prices, and other variables – they will generate the same percentage profit. This unique feature makes trading an enticing option for those seeking a fair and consistent pay structure.

Contrasting Trading vs Art: Unpredictability and Variance

In stark contrast to trading, artistic pursuits can be highly unpredictable. Two individuals performing the same piece of work can receive vastly different results based on factors beyond their control. For example, perception plays a significant role in the arts, where audience preference can heavily influence success. Unlike the quantifiable outcomes of trading, artistic endeavors are subject to the opinions and tastes of the audience. This inherent variability often makes it difficult for artists to secure a stable income, even if their work is objectively good.

Reliable Outcomes: Trading’s Consistency in Achieving Results

While it is rare for traders to execute identical trades, the principles of trading enable the possibility of achieving consistent outcomes over time. This is why I see equality in stock trading, where most see it as a rigged game.

Although there may be variance in results due to individual strategies and market conditions, the underlying premise remains the same. In theory, if one could replicate someone else’s trade, one could expect the same outcome. The same cannot be said for many creative endeavors.

Conclusion

In conclusion, trading’s equal playing field and desirable pay structure make it an appealing choice for individuals seeking financial success. Again, this is in comparison to artistic pursuits, which are subject to interpretation and unpredictable outcomes. Though retail traders are at a disadvantage to big money (Institutions, banks, etc.), trading offers a relatively level playing field against other retail traders.

Check this post out to see what it was like to trade 2021 Gamestop Short Squeeze. It was one of the most unique trading environments in recent history and the beginning of my personal trading journey. If you’d like to find out about the financial challenges artists face (specifically actors), check this post out.

If you want to learn more about trading (specifically options) the tastylive (formerly tastytrade) YouTube channel is a great place to start. I learned about so many different options concepts from watching their channel. They also offer a brokerage platform which I use and like, but so far my favorite to trade options with has been thinkorswim.