Tuesday, August 28, 2007

In the stock market or forex, who will lose money when someone make money? -

where the profit come from? nobody makes or loses money until they sell. if you buy 100 shs. of stock from me for $500, you won t realize a profit unless you sell for more. i don t lose money unless i sold them for less than i paid. it s not always a win/lose scenario. it could end up being a win/win or a lose/lose depending on how much one or the other was in for. there are quot;bookquot; loses, meaning if you bought something and the market value is less than you paid, but you don t realize the loss until you sell. that s why people ending up losing their shirt. they have a quot;bookquot; loss, and hang on hoping the price will increase, but doesn t. It is possible that both the seller and the buyer make or lose money. If buyer A buys at $10.00 and sells it to buyer B at $30.00. Buyer A has made money. If buyer B then sells it at $40.00 both have made money. Of course both could lose money. If buyer a sells at $8.00 and B sells at $5.00 both lost money. And, of course, either one could make while the other loses. Stock market/forex are zero sum games industries. If the buyer makes or loss monies, it would be from the seller (previous owner)

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