zero sum game?????????????

[Pekelo]

Quote from bitrend:

Both sides have valid arguments to approve or disapprove.

Really? Care to quote just one argument for zero sum?

But I will make it interesting! There is actually a time, when the stockmarket can be zero sum:

If the underlying company doesn't pay dividend (also no profits) and its value pretty much zero (and no expectations of sudden inventions, discoveries,etc. ) or very negative, meaning they have huge outstanding debts, THEN that particular company's stock is a zero sum game.

It usually applies to very young tech companies, that were founded on one single idea, like pets.com. They were always in the red, never paid dividends and the company's value went down the drain as they burnt through the IPO money...THAT was a zero sum game....

 

[madmunny]

bitstream

i asked him for what he thought i THOUGHT was the definition of zero sum not what the actual definition is

cause he just said that he figured i had the wrong definition of zero-sum then threw in some dumbass remark about no one having and edge and that everyone has the same chance of winning in the market as everyone else

and just like the morons that figured oportunity cost had something to do with zero sum....percentages have nothing to do with zero sum...

one person could be quaranteed to be right 100% of the time in a zero sum game and all that would mean is for every dollar everyone else lost he would profit........

so zero sum does not mean everyone has the same chance of profiting...

 

[Pekelo]

Quote from Bitstream:

that for every buyer there's a seller and the sum of the 2

Oh boy....

Let's say I buy a 25$ stock from you. The stock pays 1$ dividend annually. In 25 years I will get back my purchase price and I still have the stock, which will probably be higher than $25.

So here is the math for you:

You: $25
Me: $25 (in 2.5 decades) plus the stock

THAT is not a zero sum game in my book. Agree?

Can we close this thread now?

 

[Bitstream]

yawn

i know about the freakin' dividend but it doesn't make much of a diff for daytraders and a lot of swing traders alike, especially on tech where theres NO dividend on almost all stocks.
the only ones that are going to benefit from div yield are long term investors....don't come here and tell me that the couple of c u get for holding' on for 3 months changes the maths upside down: if u are underwater by 100meters u drawn no matter what.

by the way we are talkin' about trading here not buyin'n'hold for yrs

 

[Pekelo]

I am sorry, but the original question was :

Is the stockmarket a zero sum game?

and not

Is daytrading a zero sum game?

The answers are pretty obvious to both questions, so I am done with this thread....

 

[NanoTick]

Can't believe this is still dragging on. The stock market is a zero sum game just like any pyramid game is. If you made money on Google stock, it’s not because Google put some of it’s profits into your bank account. Rather, it’s some new buyers transferred some of their bank account to yours!

 

[Bitstream]

ja, and the op said stockmkt not 25yrs buyin and hold + the thread is under the 'trading' forum+ he made the goog eg where there's no dividend payout.

 

[whitster]

it is not a zero sum game, and i have already explained why

the nation grows wealth and the market correspondingly has grown as well

zero sum game means for every winner there is corresponding equal loss

that is simply not the case in the stock market

 

[Bitstream]

Quote from whitster:

it is not a zero sum game, and i have already explained why

the nation grows wealth and the market correspondingly has grown as well

zero sum game means for every winner there is corresponding equal loss

that is simply not the case in the stock market

jia like amazon amazing growth since 2000

 

[madmunny]

whitster and pekelo

i thank you for your posts.....its nice to see there are at least two intelligent traders on this board

but as you can tell these people continue to believe its a zero sum game and no matter how often you prove to them that it isnt they will continue to think it is cause they read it in a book once or new a guy who new a guy that told them it was.

So yes this thread is dead