if every stock transaction has a buyer & seller, does that mean 50% of the people will always be losing money?

Question

I just got into the stocks market. AFAIK every transaction must have someone selling and someone buying, both thinking that they will be making money. How can both be making money?

Does that mean at least half of everyone in the stocks market will have to be losers?

In: 97

Answer 1

If I buy a stock today for $1, sell it tomorrow to a dude for $2, then he sells it to someone else for $4 in a week, we all make money. It’s the happy ponzi scheme of line goes up. Or inflation. Whatever sounds better.