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Strategies & Market Trends : Are you considering quitting your dayjob to daytrade?!

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To: milesofstyles who wrote (418)1/24/1999 1:50:00 AM
From: Dave O.  Read Replies (1) of 611
 
< the stock moves two dollars for you and against me. we each have 1000 shares. you made 2k minus 20 bucks commission, 1980. i lost 2k plus commission, 2020. zero sum? >

The only way this makes sense is if you shorted XYZ at 10 and I go long at that price. If it moves to 12 then yes, you've lost 2K and I've made 2K. What about a transaction where both the seller and buyer were long? Your example doesn't hold up. Both can make money. Taking into account probability theory and historical data shows a positive sum outcome.

Dave
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