How is This Production?

I have been thinking about how this actually does any good. Let us say that I buy 10,000 euros and wait for the market to go up. I eventually sell them back into the market at a higher price and collect my profit. The basic question here is, how is this productive for anybody except me?

After some consideration, it became clear to me. You should pay close attention to this, for it reveals a remarkable truth about all markets and why we need traders besides the idea of increasing "liquidity."

Since the market price in this instance is going up for euros, the demand for them is rising. If demand is going to be even higher in the future, then more euros are going to be needed in the future. The job of a trader is to buy those euros at a cheaper price, hang on to them for a period of time, and then make them available at the higher demand. In other words, bring forward in time a number of euros to help meet demand in the future.

It turns out the trading is very productive, and a person who trades successfully should make money at it. The pay can be very good, but the difficulty in predicting where the market is going also makes that pay well earned! Being able to operate in the markets is a lot like riding a bike. It takes skill developed over time till a trader can tell what to do almost by feel. He or she gets to a point where the trades can just be seen.