Member-only story

Money Velocity Does Not Exist

How transactions and value are related

Derek McDaniel
7 min readJul 20, 2023

Trading and Consumer Spending are Similar

To start off, I want to talk about trading. This is important, because financial trading can be thought of as an extension of consumer exchange.

There is a ton of advice on trading and investment out there. I am certainly not one with any secrets or tricks to share on this matter. I am interested in finance, but mainly to understand how our society works, and to understand an individual’s place in society.

Mr Lahey’s Cheeseburger Delivery Service Is Definitely a Good Investment

There’s No Good Gamblers Only One’s Who Haven’t Lost Yet

While I haven’t thought much on how to trade profitably, I have thought a lot about trading as an activity, the premise of handing over money to someone else, in the hope they hand you back more money in the future. On the surface this sounds a lot like gambling.

One issue of trading is “leverage”. While the simple definition of leverage is using debt to increase your opportunity to profit, there is a more general way to think of leverage in trading, that is based on the common understanding of the term. Leverage is the power or influence you have other another party. In general, handing people money won’t work, unless you have power or…

--

--

Derek McDaniel
Derek McDaniel

Written by Derek McDaniel

Technology, programming, and social economy.

No responses yet