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11/05/16
19:43
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Originally posted by stevier95
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I've often heard on this forum that the share market is just a mechanism of transferring wealth. This is something I'd like to talk about in more detail. Obviously, every trade has a buyer and a seller, and in some circumstances then, a winner and a loser. For example, I purchased NOR in the 3s and sold out very near to its highs. I was ecstatic as this had been my most successful trade. Who wouldn't be happy with a 400% gain? After thinking about this question for some time, I've begun to think about the person who bought my shares off me, allowing me to realise my gain. This buyer would now be down 60-80%, assuming they didn't have a stop loss in place. I'd be very interested to hear people's thoughts on this idea; the idea of there being a winner and a loser in trading, and how they handle it.
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Hi Stevier95!
Don't forget that you might also be selling to people at the the pointy end of their pyramid buy-ins. They may be averaging up for more exposure - they're that good