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
What you are telling happens mostly in gambling but in trading until the user who have purchased not selling cannot say will be in loss, so in trading it is always users who are buying and selling in each price.
Like for example , i bought bitcoins for 200 usd and then when the market went up i sold for 500 usd but same time another user bought in 500 usd and then when market went up to 700 he sold and same time the buyer may be new or old one that no one can say and who ever bought in 700 usd and market goes down he wont sell but he buys more and average his buying price and when market went up he sells and another user buying it. So in this no one can confirm that whether the buyer is looser or seller is looser.