Re: Buy and Hold vs Market Timing
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I buy a stock at 20 and sell it to you at 30, the next day it goes to 35. No one lost money, I made 10/share, you made 5/share, everyone is happy.
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why did the stock go up? because there were more buyers than sellers. not everyone who sold at 30 had bought it at 20 like you. but those buyers at 30 had to get the shares from somewhere.. maybe shorts, maybe people who bought at 40 and cutting their loss, etc.
either way, somethings not right. the explaination of market cap doesnt clear it up. maybe its something to do with the company producing more revenue and paying it back as dividends.
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