Btw,
Theory of zerosum applies only to trading.
If you have investment in markets that is never a zerosum game as the market capitalization keep growing on and till the time market comes back to from where it started. Even then dividends that you got by your investments need not be paid back to the markets.
Also, you might be focusing too much on the various entities and actors involved in the markets. As a theorist it might be good to know about all of these, but in a practical trading environment many will vouch that focusing on psychological aspects or money management part keeps the trader in black. you just need few tools viz a chart and your calculator.
Dear Hauler,
If one (small investor) has invested in the market then i agree that it is not a zero sum game but a "
negative gain" game if he stays invested ...(Depreciating value of the investment , inflation and a small dividend which wont even be equal to the basic interest levels of his investment, time decay of the value ...Long term investor has no meaning in doing so now a days ...
Regarding Market capitalization , only the conglomerate benefits...not the initial investor ....If the company has grown and it increases it market capitalization by offering additional shares (Increased shares in the market) to new fools and take their money (absolutely interest free with "no liability" declaring bankruptcy will assure you nothing, while the heads of business would be smiling away with huge sum of money in their personal accounts), how does the initial investor really benefits ?? The risk is carried by the small time investor and all he gets in return is "Baba Ji ka Thullu" (Nothing practically).
If they were rewarding the additional shares to the initial investor for at least 50% price , i agree that there has been a big gain to the person(who has really carried the entire risk on his investment) who has helped them in growing their business initially...but that is not the case at all (rarely)..however this has a dark side argument to it and the business does not grow if they follow this concept all the time ...as they don't get additional funds ...sure it is a good philosophy for basic growth story for the nation with bla.. bla about employment generation , economical growth and all such masks the Govt, Banks , MF players or the Rich industrialist wear.. however the real beneficiaries are them not the initial small time investors.... unless the investor is a major stake holder where he will kill the management for the declining business with his veto powers....
Interest rates in USA and Europe are very low (Intentionally kept low by great economist for benefit of industries and not small investors ) so it makes some meaning there for the general people/public at large in the west to put their hard earned money in stock market (indirectly forced to invest there)... the industrialist have managed to fool the general public of west to ensure they get the funds at a very low cost and have a luxurious life ...
However this is a big subject and a controversial subject which does not fit into the discussion of this forum or the topic
..
I would like to learn from you all how to "earn well" against this lopsided unfair game ......he can be my God
Regards
