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
Something like that.
If A sells stocks to B, C, and D for $1 a piece and then the stock rises to $2 a piece, only 25% of the people have lost money. Although if we count A as four separate people, one for each transaction, then you’re basically correct.
Nobody makes or loses money from one transaction though, it is always by at least two transactions. So you cannot say that for any one transaction there is a winner and a loser, it’s more complicated than that.
Fun fact: about 80-90% of individual investors lose money in the stock market overall according to popular estimates.
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