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

* Don’t forget that some selling is to “cash in an investment” because the seller wants cash now.

* Also, the buyer is hoping for growth in the stock (future gains) so they may want to “buy low, and sell high”