If people make money in stocks and crypto by buying low and selling high, who is buying the stocks from they are high, and why?

Question

Let’s just say for example, I bought a stock at $10. Then it goes up to $500

I can obviously make a profit, but why would someone buy it at such a high price?

Is it like the person who buys it at $500 is hoping that it will go up to $1000, then the person who buys it at $1000 hopes it will go up to $1500, and so on?

In: Economics

Answer 1

The people that lose money in stocks.

Not everyone wins. Some stocks go down and never recover, some companies go out of business, some people are just dumb and buy high.

Yea, some people buy high hoping to sell higher. Sometimes this people are right, sometimes they are wrong.