Trading Educators Blog
From time to time we get this very important question: Is trading a sin? Often this question comes from people in ministry who want to become traders in order to fund various church activities.
The answer is: No, trading is not a sin, but trading without knowing what you are doing can lead to a lot of problems. Trading in and of itself is not considered to be gambling. The futures markets exist as a venue in which hedgers are able to "purchase" price insurance. The ability to hedge against rising or falling prices is the economic and social justification for the futures markets. However, gambling is considered to be foolish and sinful. Trading without adequate knowledge of the markets and of self is foolish, because by doing so you are gambling.
There is a certain amount of self-knowledge needed to choose the proper trading method. It has even been suggested that many small traders in the futures market, without knowing it, secretly want to lose. They jump in with high hopes - but feeling vaguely guilty. Guilty over "gambling" with the family's money, guilty over trying to get "something for nothing," or guilty over plunging in without really having done much research or analysis. Then they punish themselves for these or other perceived sins by selling out, demoralized, and at a loss for what to do next.
Interestingly, scripture itself say that "that which is done in doubt, is sin." That brings up a very interesting point to think about. I have often written that if you don't believe in yourself and in what you are doing, you are almost certain to end up a loser. If you don't have the courage of your convictions, you are trading in doubt.
Does this kind of sin mean you are condemned? Not at all! Sin is a very interesting subject. Sin has its own built-in penalties. But first we need to define what sin is. According to scripture, sin is breaking the law. But there are all kinds of laws. Not all law-breaking need result in the death penalty. For instance, you can break the law of gravity and not necessarily die. You can leap from a high place and maybe only break a bone! You can sin against your body by consuming lots of junk food. The result may not be death. The result may be the pain and suffering of a long illness.
There are all kinds of laws. There is even a Law of Charts! The Law of Charts is a concept that describes how a chart will look as the result of human emotional action and reaction in the market place. If you break that law, i.e., go against the clear flow of market energy, thrust, and momentum, you will pay the penalty for your sin. So the things we try to teach you at Trading Educators are all designed to get you in step with the flow of the markets. And far away from sin!