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Every Trader or Trading Position for that matter is subject to Market losses. And it is only because of Zero-Sum Theory which is the core of Stock Market working.
First the Technical Definition / Explanation of “ZEROSUM”:
In game theory and economic theory, a zero-sum game is a mathematical representation of a situation in which each participant’s gain or loss of utility is exactly balanced by the losses or gains of the utility of the other participants.
Now, Simple Explanation / Definition of “ZEROSUM”:
Your loss is another Trader’s Profit and Your Profit is other Traders’ Loss.
On top of that, Irrespective of whatever you do, for example; even none of below mentioned permutation and combination could give you guarantee (in any form) against future date Market losses; though we don’t wish for losses for anyone.Read More »
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