The correct behavior for the individual

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The moral concern

Finance services offered to individuals leave them the responsibility to operate in accordance with the moral principles. Speculative activities are to be avoided even if within the limits of the different applicable laws: individual speculators are not investors and in the moral context are considered socially useless and of damage to the common good.

Trading is not investment but is a speculative practice; it is important to be alert to this difference: "speculative transactions are made for the sole purpose of getting a profit from changes in prices. In the case of operations on stock, purchasing and selling of assets are made with the purpose to gain money on changes in prices as soon as possible without any interest to maintain the stock in view of future dividends.

The negative behavior and the risk on the real economy

This practice is opposite to investment and represents a negative behavior for an individual in a religious context; it causes attachment to money and "the hope of becoming rich quickly and without the drudgery of labour distracts a man from pursuing the path of honest work".(*)

"it is morally impossible for a man who spends all or the greater part of his time speculating, to avoid all the dishonest practices of speculation".(**)

Speculative activities are also of potential significant damage to the real economy. 

Conversely, investment is carried out in the medium-long term perspective with the aim of obtaining a fair return through dividends without hazards in the expected returns on capital and avoiding a reprehensible attachment to money.

(**) International Journal of Ethics , John A. Ryan., Catholic University of America.

The correct behavior for the individual

To maintain an adequate personal profile:

  • have in mind a medium-long term horizon (generally over 1 year)
  • invest in ethical activities, (i.e. companies operating in socially useful business);
  • Avoid the study and the purchase of any financial instrument designed for the pursuit of short and very short-term profit;
  • avoid the pursuit of profit through short-term activities;
  • avoid the attachment to the idea of ​​making money;
  • avoid any offer (even though legally admitted) which allows or plans speculative activities.
  • don't pay attention to daily price indices of the financial markets because they are the basis for speculation and not investment.
  • remember that each individual speculative transaction in the financial markets participates to the speculative structure that is of potential great damage to the real economy.

The attention should be focused on the above aspects which are of primary importance for the correct behavior from the moral-religious point of view, regardless of any type of  personal utilitarian approach through trading that causes attachment to money and easily may promote further reprehensible behaviors. Also, any individual speculative transaction by means of trading increases potential significant damage to the common good.



Main points to follow to avoid the moral problem of trading
Main points to follow to avoid the moral problem of trading

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