What is the True Value of Trading to Society?

When I first started trading during my university days, I remember pondering about the true value of trading to society. I was studying engineering at the time and I saw my friends graduating to become engineers, bankers and lawyers. I personally saw that engineering was possibly one of the most noble of careers, since of course there is a direct contributor to the improvement of living standards of society (think computers, roads, bridges, plumbing, electricity, gadgets, cars and so on). Each and every occupation out there has a purpose for society. But what about trading? How does trading stocks or forex in your own personal trading account contribute to society? What value does your trading bring to society?

I've found that this issue does come up every now and again in certain traders. Some ruminate over this, others simply shrug it off as they have other priorities in their mind. Trading psychology is a very subjective issue. Of course there is never one way of thinking, and one man’s perception of same event will be different a totally different experience to another. In my own opinion, the reason this topic came to fruition in my own mind was because I simply had too much time to think and ponder at that time. So the next problem is the need for you to find a reason to rationalize and answer the question: What is the true value of trading to society?

At that time, there was a disconnect in my mind as to how I was providing value to society through my trading activities. I thought that what I was doing was a thoroughly greedy and selfish activity, only concerned with making a profit with no sense of regard for the possible losses of the other person on the other side of the trade. Seeing it that way, I thought, trading is evil, it doesn't bring any good to society. Is trading simply a transfer of wealth from the financially illiterate into the financially literate's account?

Your trading does bring value to society. If you are profitable, you are paying your taxes. You pay for the services that you use: brokers, banks, education services, lawyers, financial planners and accountants; which in turn pay for people’s pay packets. Also by actively trading you are providing market liquidity, helping the market determine the "correct" price of an asset at that particular time. I have a feeling that I will revisit this topic soon.