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Old 10-03-2004, 09:18 AM
tek tek is offline
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Join Date: Oct 2004
Location: Minneapolis
Posts: 523
Default Re: Similarities between Poker and Investing

I believe the stock market is zero sum short or long term.

If I buy a stock for 10 and it goes to 12 I make 2. If it thern goes back to 10, the guy who bought it from me loses 2. Of course in between him and I it could fluctuate, but ultimately the trading profit and losses across all the investors who touch the stock will ad up to zero.

Thake options, I write a covered call option. You pay me a premium for the option. The stock goes sideways for two or three weeks. I win your premium and you lose it. Zero sum.
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