Thursday, February 9, 2012

Is stock picking a zero-sum game?

When you buy a stock and the stock rises, you're a winner and the seller is a loser. Then it is zero-sum game. Same for the market timer.

In a secular bull market, the ones holding on the stocks are winners, and vice versa.

A good stock picker usually makes good money and to him it is not a zero-sum game. So is a good market timer. When the market rises, we all make good money. Hence, it is not important whether it is a zero-sum game. Same when we beat the market.

This is short post, but it provokes my thoughts and I cannot make a convincing conclusion.

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(c) TonyP4 2012. Written in 2/9/12. Last updated in 2/9/12.

Disclaimer:

Do not gamble your money you cannot afford to lose. Past performance is a guideline and does not guarantee future performance.

All my posts are for informational purposes only. I'm not a professional investment counselor. Seek one before you make any investment decision.

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