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

They can both make money. If I hold the stock for 10 years while the value rises from $10/share to $30/share, then sell it to you and you hold it for 10 more years while it rises to $50/share, we both make money. I just make mine 10 years before you do.