Post
Topic
Board Beginners & Help
Re: How many beginners make money trading in Bitcoin?
by
odolvlobo
on 14/10/2018, 19:54:47 UTC
Always remember that for you to make a profit, somebody else has to make a loss,
not necessarily. imagine someone buys bitcoin at $1000 and then sells it to you at $2000 and you sell it at $4000. you both doubled your investment and "won.
The best way for a trader to measure success is by comparing their return to simply holding one side or the other. In your case, the price rose from $1000 to $4000, so the first trader lost $2000 and the second trader made $2000, for a net of $0 -- it is a zero-sum game when you remove the returns from simply holding.
all you can say is that first trader missed out on an additional $2000 profit. but he didn't lose anything because he invested X dollar and got 2X dollar out and that is considered a win not a lose.

The point I was trying to make is that it is a zero-sum game when you remove the returns from simply holding.