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

When you buy stocks, you buy part of a company. Companies have profits, and by holding the stock, you are participating to those profits.

It’s a not a zero sum game. There are other markets like that, Forex, for example. That’s why normal people should stay away of those.