Re: Buy and Hold vs Market Timing
Poker is basically a zero sum game.. for you to win $$$ at the table, someone else at the table must lose $$$.
In the stock market, the market cap of a stock changes (ie the size of the pie changes), for example...
You own 1,000 shares of stock XYZ that has 10 million shares outstanding, and is trading at $10, and therefore a market cap of $100 million. The stock goes up $1, you have made $1,000, collectively all the owners of the stock have made $10 million, and the stock now has a market cap of $110 million.
Yes some people may have held the stock short and thus lost $$, but it is not equal to the number that held it long, therefore its not a zero sum game.
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