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The futures market is not a zero sum game - it is a negative sum game.
Every time you do a trade you have a commission to pay and generally are on
the wrong side of the bid-ask spread - so the average participant should be
expected to lose.
-----Original Message-----
From: GREHERT@xxxxxxx <GREHERT@xxxxxxx>
To: RealTraders Discussion Group <realtraders@xxxxxxxxxxxxxx>
Date: June 6, 1998 3:17 AM
Subject: GEN: Zero Sum Game
>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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