What if everyone won in the market

[Technically Fundamental]

But when everyone pulls out at once, then the money starts dissappearing

It's not even there.

 

[avibe]

Yea, its funny, if you think about it, our financial system is one big ponzi scheme.

Yeah i have been thinking of that too. At least someone has said.

The reasons i am asking these questions is for us to open our minds and think clearly!
Successful trading yall.

 

[pmenefee]

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

Now come on guys.. faith does not equal ponzi scheme and just because it works because we all pitch in doesn't make it evil. Just know it's weakness. The problem is people putting so much worth to money. Inflation erodes worth too. Wealth doesn't have to mean a lot of money. It may mean just having enough to do what you want and to have enough to give to others in need. There are a lot of things in life that can't be measured and that I'd hate to lose.

Our financial system is based on a functional society. It is for the people and by the people. We do not exist for it. If it crumbles it is because we as a society have failed in someway. So trade hard and be sure to spend some of your hard earned time and money with your friends.

 

[avibe]

Our financial system is based on a functional society. It is for the people and by the people. We do not exist for it. If it crumbles it is because we as a society have failed in someway. So trade hard and be sure to spend some of your hard earned time and money with your friends.

Well spoken. The financial system we have created is really sensitive. It aint perfect but still has lots of heavy fundamental problems.

 

[pmenefee]

... The financial system we have created is really sensitive. It aint perfect but still has lots of heavy fundamental problems.

And maybe now we come to the heart of your problem. Perhaps your real concern is the volatility of the markets. And I would agree but only to an extent. I have family that is pretty well convinced the best thing to do is to go to a job every morning and expect a competitive wage as a right for doing an average days work. They fret about the price of fuel and milk and haven't saved enough for retirement. And while our financial system may be a bit weak at times it has a lot of factors working against it such as the media, politics, and the public (aka my family).

Bottom line. Traders bring stability (most of the time) to the markets. The media tends to either dull everyone's brains with a hypnotic chat of news or sends everyone into a panic. And politicians, well... enough said there. I mean think about it, why tell everyone the price of fuel is going up when they can't do anything about it. Well they can, they can hedge their bets on the market. But that would take some savvy and motivation. So to answer your original post; if you are playing the markets your a step ahead of most and winning already.

Great chat though... keep asking the tough questions.

 

[alchemillia]

Sorry to be a smart ass!!

What if everyone won in the markets?
This is an oxymoron. A market by definition ensures that this is not possible.
What if everyone in a casino won? The casino would go bust. It would exist only for a moment in time. Off course some crazy casino operator could keep it open and lure in idiot investors with promises of great wealth - christ! this sounds like trading!
Everyone could break even (theoretically). Everyone could loose - that is retail traders like us because of spread, commission etc. Sellers and buyers alike. Those on the sideline can loose as inflation eats their capital. (slowly but surely)
There is no winning or losing just the transfer of capital between groups for an undetermined temporary period.

 

[Trader333]

What if everyone won in the markets?
This is an oxymoron. A market by definition ensures that this is not possible.

In my view this is not entirely correct. I agree that it is the case with almost all trading as it is a zero sum game. However, markets exist to facilitate trade and that does not mean that someone will always lose and someone will always win. It was previously said that in manufacturing you get value added to the raw materials you start off with. As such when someone buys the end product then they have done so because they value it at equal to or higher than the price they paid and the person receiving the payment is getting more for it than their costs in making it. As such both parties are in a win - win situation.


Paul

 

[alchemillia]

Hi Trader333
Great comment back - thanks.
My idea of a market in this case is the LSE as opposed to autotrader for cars. The LSE started as a building where traders could trade in some comfort for a fee. In this instance the market is a separate money making enterprise. Yes it was created to facilitate trade but for a fee.

If I am a banana grower, importer, retailer and I think that by growing pink bananas I can get 10% more. I have a few R&D costs but growing, labour, transport, storage, distribution are the same as the yellow ones than I am quids in. I have benefited. Customers love my new bananas.If I pay more wages the workers benefit. The R&D company benefits. I benefit. Do consumers benefit? From a notional/psychological point of view they do. Pink makes them happy and they are happy to pay a little more for this. But have they won or lost? Have they benefited in terms of cash in their pocket. The idea of winning and losing loose their significance in this (pretty stupid) example.

Soon other banana companies will bring out pink bananas, I no longer have a USP, price is next, I cut wages, costs, price. I need more R&D to develop blue bananas. They are the new rage. I need to sell more bananas so I hire an advertising company. They benefit. I need to tell the consumer that eating 3 blue bananas a day is good for your health and will help you get girls. Perceived value increases but has actual value?
If then we were to quantify perceived value in monetary terms we could use another example where this could be measured.
Phones, mobiles, etc have all been seen to add value by becoming cheaper and more accessible. I can talk with anyone anywhere. I have more friend, I blog my thoughts, I have 3 laptops. I "get more work done". Life expectancy increases but birth rates decline and this has been shown to correlate directly with availability of cheap technology. In a regular job if I retired at 65 I am in trouble. A reduced population cannot pay my retirement. I will have to work to 75. My point is that the perceived value inherent in products is momentary and in the long run I will pay more. At least I can complain to more people.
When I retire I can live on a diet of cheap multi coloured bananas that the "market" provided so it's not all that bad!
By the way I love the markets but I guess you would not guess it from this.

All total disagreements welcome.

 

[avibe]

This is an oxymoron. A market by definition ensures that this is not possible.
What if everyone in a casino won? The casino would go bust. It would exist only for a moment in time. Off course some crazy casino operator could keep it open and lure in idiot investors with promises of great wealth - christ! this sounds like trading!
.

Lol

 

[everyonerich]

Am just thinking what would happen one day if let's say everyone won in the market. Let's say everyone had positive returns. What would be the scenario?

heres your answer :

THERES NO MARKET