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Trading on the stock market (by and large) doesn't create value. If someone makes a killing, it's because someone lost it. You hear about those who make money -

Trading on the stock market (by and large) doesn't create value. If someone makes a killing, it's because someone lost it. You hear about those who make money - because it's the story you 'want' to hear. People don't understand how money comes from value created, in the long run. People think they can game the system. Everyone feels they are not a part of the average.

friedman23 6y ago
>If someone makes a killing, it's because someone lost it Not true, companies can create value, that value is reflected in the stock price. The economy is not zero sum. Did all the people that got rich off of apple, google, microsoft, nvidia, etc get rich because someone else lost money?
- nish1500 6y ago
  Exactly! Which is why my comment talks about 'Trading' not 'Investing'. https://www.investopedia.com/ask/answers/12/difference-investing-trading.asp https://www.investopedia.com/ask/answers/12/difference-inves...
  - deleted 6y ago
    [deleted]
- rootshelled 6y ago
  Those companies got value via selling products with a margin to their customers. So, technically their customers lost money for those companies to gain money. Not that there is anything wrong with that. Just pointing out how I think your logic is flawed.
anonymouse008 6y ago
Eh, depends on how you defined ‘lost’ a lot of money — Many of the calls that have hit recently only capped out people’s gains - so yes there was an opportunity cost to that lost, but people didn’t literally lose invested capital. Not as much money as you think has gone into the red this year - even on the way down.
refurb 6y ago
Trading creates liquidity, which supports a healthy capital market which companies can access for capital.
- bsanr2 6y ago
  (I mean so does heavy taxation of capital ~hoarders~ holders, to be redistributed among the country's labor base, who will then tend to spend it immediately on goods or personal investment, but we don't talk about that. OR The point of liquidity is to get people doing things, but the status quo today seems more like giant firms trading above our heads to manage the risk of rent-seeking on an increasingly precariously-positioned consumer class.)
  - refurb 6y ago
    Neither of your points seem based on an accurate understanding of the financial markets.
    - ajmadesc 6y ago
      Neither of his points seem based on Economic dogma shoved down your throat during undergrad.
      - refurb 6y ago
        No it doesn't. It seems based on populist memes and from watching popular movies. People with invested capital aren't "hoarding" it. It actively invested. No, the point of liquidity is to encourage an active market, which is exactly what it's doing. Not sure what "trading over our heads" even means.
        bsanr2 6y ago
        Maybe you should try to understand the things you respond to, rather than posting a kneejerk response, then?
    - 6y ago

friedman23 6y ago

>If someone makes a killing, it's because someone lost it Not true, companies can create value, that value is reflected in the stock price. The economy is not zero sum. Did all the people that got rich off of apple, google, microsoft, nvidia, etc get rich because someone else lost money?

nish1500 6y ago
Exactly! Which is why my comment talks about 'Trading' not 'Investing'. https://www.investopedia.com/ask/answers/12/difference-investing-trading.asp https://www.investopedia.com/ask/answers/12/difference-inves...
- deleted 6y ago
  [deleted]
rootshelled 6y ago
Those companies got value via selling products with a margin to their customers. So, technically their customers lost money for those companies to gain money. Not that there is anything wrong with that. Just pointing out how I think your logic is flawed.

anonymouse008 6y ago

Eh, depends on how you defined ‘lost’ a lot of money — Many of the calls that have hit recently only capped out people’s gains - so yes there was an opportunity cost to that lost, but people didn’t literally lose invested capital. Not as much money as you think has gone into the red this year - even on the way down.

refurb 6y ago

Trading creates liquidity, which supports a healthy capital market which companies can access for capital.

bsanr2 6y ago
(I mean so does heavy taxation of capital ~hoarders~ holders, to be redistributed among the country's labor base, who will then tend to spend it immediately on goods or personal investment, but we don't talk about that. OR The point of liquidity is to get people doing things, but the status quo today seems more like giant firms trading above our heads to manage the risk of rent-seeking on an increasingly precariously-positioned consumer class.)
- refurb 6y ago
  Neither of your points seem based on an accurate understanding of the financial markets.
  - ajmadesc 6y ago
    Neither of his points seem based on Economic dogma shoved down your throat during undergrad.
    - refurb 6y ago
      No it doesn't. It seems based on populist memes and from watching popular movies. People with invested capital aren't "hoarding" it. It actively invested. No, the point of liquidity is to encourage an active market, which is exactly what it's doing. Not sure what "trading over our heads" even means.
      - bsanr2 6y ago
        Maybe you should try to understand the things you respond to, rather than posting a kneejerk response, then?
  - 6y ago