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After reading this thread I would like to add my 2cents.
The trading industry has assured that trading is a minus-sum game. Winners
receive less than what losers lose exactly the same as the gaming industry. If
you and I bet 10.00 on the next ten point move in the Dow, one of us will
collect 10.00 and the other will lose 10.00. That is truly a zero-sum game. If
however we make the same 10.00 bet through brokers when we settle the loser is
out 13.00 and the winner collects 7.00, while the two brokers deposit 3.00 each
for no risk to themselves. Don't buy the industries line that its a zero-sum
game, we all support them while we trade, bet, hedge, and straddle against each
other. For traders the net is a loss, not the zero-sum the industry sells. And
lets not forget data vendors, software merchants, trading system vendors, book
sellers, newsletter writers and all the others, who rely on us for their
livelihoods. The market will extract from us win or lose.
"The darkest hour in any man's life is when he sits down to plan
how to get money without earning it"
Sentinel Trading
____________________Reply Separator____________________
Subject: Gen: Is trading gambling?
Author: owner-realtraders@xxxxxxxxxxxxxx
Date: 6/7/98 9:59 PM
Subject:
Re: Gen: Is trading gambling?
Date:
Sun, 7 Jun 1998 16:46:37 EDT
From:
BIIRE4U@xxxxxxx
To:
knight@xxxxxxxxxxxx, realtraders@xxxxxxxxxxxxxx
Maybe I'm missing something on this "zero sum" game we seem to
be
accused of playing in... I understand for every buyer there is a
seller, but
that doesn't necessarily mean a net of zero.
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I always thought the term Zero Sum Gain referred to slippage and
commission. The idea that as soon as you enter a trade you have an
immediate loss.
Troy
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