Trading Is a Zero-Sum Game
Article translated from: https://botacademy.ddns.net/
Nowadays, the word trading seems to be misunderstood as an easy shortcut to getting rich quick. Perhaps this is because too many self-proclaimed "gurus" are peddling the dream of effortless wealth. Just follow their courses/methods, and anyone can get rich. But what these "gurus" won't tell you is that trading, especially short-term trading, is essentially a zero-sum game — that is, every winner necessarily comes with a loser. Even if everyone in the world adopted the same strategy, it would be impossible for everyone to get rich.
What Is a Zero-Sum Game?
A zero-sum game is one in which one party's gain is exactly equal to another party's loss. The total amount of money in the system neither increases nor decreases — it simply moves from one participant to another.
Imagine you're playing poker with your friends. If you win $50, the rest of the table (or all the other players combined) lose a total of $50. The total amount in the game hasn't changed — it has just shifted from one person to another. That is the essence of a zero-sum game: one person's gain is exactly offset by another person's loss.
Why Is Trading a Zero-Sum Game?
Author:AI Router
Link:https://www.airouter.me/blog/ai-trader-post-05
Non-commercial reuse with attribution (CC BY-NC-SA 4.0).