Trading & the Zero Sum Game Debate

Discussion in 'Trading' started by butterfacetrader, Aug 24, 2014.

  1. londonkid

    londonkid

    lol yes. This is a staple content on forums. ZSG is a favourite and then the stock argument comes out. Of course you and Mav are correct but In reality it doesn't matter, the take away is trading is a competition (I know you know that). Another staple is arguing about what constitutes a scalp or swing trade. You can see people bat this back and forwards for days. Literally pages full of 'a scalp is not 20 ticks you idiot' & 'I have been trading 500 years and a scalp is <5 ticks'. It's not going to change anytime soon. lol.
     
    #71     Sep 7, 2015
    i960 and StarDust9182 like this.
  2. Just for fun I thought I would google the magical dividend fairy edge. What came up was ( on the fool site no less)

    http://www.fool.com/investing/divid...y-co-delivers-a-magic-dividend-increas-2.aspx

    Who woulda thunk it?
     
    #72     Sep 7, 2015
  3. 777

    777

    Unless you want to roll your own definition of what zero-sum means, there is no debate.

    Trading is not zero-sum for the traders.

    Simply Google the definition of zero-sum if you are in doubt.

    (Traders money constantly leaves the game in the form of slippage, traders fees, etc)

    A poker game between two friends at home is zero-sum. If 100 is lost by one player the other player has won 100.

    The same two-handed poker game in a casino is not zero-sum as money leaves the game in the form of house fees and dealer tips. Over time it is possible that both players lose!
     
    Last edited: Oct 24, 2017
    #73     Oct 24, 2017
    Xela likes this.
  4. Overnight

    Overnight

    Hell yeah, PvP poker at a casino is a big win for the casino, because the only money they put up is the dealer's salary plus the other incidentals like power and floor space. Considering that, they make money on every hand with the rake.
     
    #74     Oct 24, 2017
    777 likes this.
  5. 777

    777

    Absolutely.

    This said, some minus-sum games are beatable and some are not.
     
    #75     Oct 24, 2017