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Let's talk about the concept of a Zero Sum game. The implication is that for
every Dollar won, there is a Dollar lost. This is the nature of the futures
market. Assuming you are a better trader than the "other guy", you will "win"
that dollar and he or she will "lose" it. But that's a tough assumption to
make, especially when one is just starting to trade futures.
The stock market on the other hand is not a zero sum game. It averages 10%
per year apprectiation, which I guess makes it a "10% Sum game" (long) and a
"-10% Sum game" (short). Trading stocks on the long side is a fertile
training ground for "future" "futures" traders who want to practice with a 10%
backwind (try saying that 10 times fast). Just my opinion and food for
thought.
{DISCLAIMER: I have no professional connection with any stock exchange}
Best Regards,
Jerry Rehert (grehert@xxxxxxx)
Atlanta, GA
@ 06:03 am, June 6th, 1998
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