Whenever I trade and make a profit, does someone else lose?
For example, I've been watching an altcoin market for three years and knew that a certain currency always triples in value going from x to 3x in a couple of months. Having spare money avaliable I put some in to test the strategy and I'm close to my 3x at the moment.
My question is, whenever I trade and make a profit is there always going to be someone who's made a loss or is this an odd way of thinking? Could it be that these people are losing a small amount of money or that these people are buying a coin by going (I'll put 10% in that) so as to not really matter if it profits or. Loses as it generated a stable ish value.
Yes yes yes ofcourse someone loses his trade when you win a trade. This is how market works. But not always do they lose in terms of money sometimes they lose in terms of opportunity too but yes this is law of market positive and negative balance each other. What is more shocking is that 90% of small traders lose up and only 10% win to balance off the market this means wealth of 90% is transferred to the remaining 10%. This is why newbies are advised not to enter the market without proper risk management strategy