Mr. Charts
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!!!
So who would take the other side of the trades?
Must go, a flight of flying saucers has just landed in my garden and the crews are asking for Pimms.
So who would take the other side of the trades?
Must go, a flight of flying saucers has just landed in my garden and the crews are asking for Pimms.
avibe
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Ok. Now this brings me to my point, trading is about beating a fool at a game. Preying upon the weak and the unlearned. I have come to realise one thing. When I enter the market, I am at war, there is no luxury no mercy!!
Who then is my enemy or challenger at the market? The big banks?
Think like your enemy.... You are more likely to win
banks enter the market to take your money, you too, enter the market to take their money!!
Who then is my enemy or challenger at the market? The big banks?
Think like your enemy.... You are more likely to win
banks enter the market to take your money, you too, enter the market to take their money!!
Is it? Why just preying on weak and unlearned? I don't think all those trading for banks are going to be weak and unlearned. But it isn't as simple as that is it. Banks have their own needs and plans and I doubt they really care about you. To say they enter to take your money seems silly.
arabianights
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Buy everything and hold for lifetime. Everyone wins 
War isn't the best analogy
I'd recommend sports as a better analogy. It is true it is a battle of wits but not agains the "weak" just agains the lesser prepared. The point being that, although the market isn't perfect, it is one of a continual process improvement. We perfect our game and they perfect thiers. I'm no more stealing or preying on the weak than I am at the local flea market. Which reminds me, I need to check my ebay watchlist.
I'd recommend sports as a better analogy. It is true it is a battle of wits but not agains the "weak" just agains the lesser prepared. The point being that, although the market isn't perfect, it is one of a continual process improvement. We perfect our game and they perfect thiers. I'm no more stealing or preying on the weak than I am at the local flea market. Which reminds me, I need to check my ebay watchlist.
donaldduke
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This can happen to a large degree (not everyone, perhaps 80%) but only for a limited time, its called a bubble and they can last several years. But eventually they correct.
The other time might be during hyper inflation. Most of the people who own stocks will making big money in nominal terms, but against a stable currency the price of the stocks will probably be going down.
Another scenario is an IPO. If a new stock closes at its very high price on its first day, and assuming no one went short. Then everybody had positve returns in that stock atleast for that day.
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avibe
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Trader333
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The banks are not the most likely group to be taking the other side of a trade taken by an individual day-trader. I thought that their strategies are ultra conservative and rely on small movements in low volatile instruments with very large size being used.
It is far more likely that in any given trade your opposition could vary enormously and as such you are unlikely to be able to label them into any of probably numerous categories.
Paul
Hoggums
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The answer to your original question is if everyone won then there would be rampant inflation.
Theoretically it is possible.
Company A mines copper - sells it for $10/ton to wholesaler A
Wholesaler A sells it to Trader B for $15/ton
Trader B sells it to Trader C for $20/ton
Trader C sells it to manufacturer D for $25/ton
manufacturer C manufactures radios using copper for a profit of $2 per unit
Who is the loser here?
Theoretically it is possible.
Company A mines copper - sells it for $10/ton to wholesaler A
Wholesaler A sells it to Trader B for $15/ton
Trader B sells it to Trader C for $20/ton
Trader C sells it to manufacturer D for $25/ton
manufacturer C manufactures radios using copper for a profit of $2 per unit
Who is the loser here?
arabianights
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Technically Fundamental
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Value added through manufacture/transportation.
avibe
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That's why currencies used to be bcked by gold. The money came out of the ground
Dont you see something is a miss here? Our financial systems are based on faith - its intangible!
Mr. Charts
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This is quite different to the opening post.
Paper money is merely a convenient representation of wealth but is only one form of wealth.
Value is different and can go up or down............or sideways.
Wealth can be created by added value without someone somewhere necessarily losing.
Richard
avibe
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Technically Fundamental
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Thanks. Makes a bit of sense. Still there is an element of faith
Read what it says on the notes and you'll see whats what.
Yea, its funny, if you think about it, our financial system is one big ponzi scheme. If everyone trusts the system and believes their money is safe, then a few people can pull out of the markets without anyone else's money being effected. But when everyone pulls out at once, then the money starts dissappearing
