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Re:u/DeepFuckingValue and the GameStop Reddit mania by recursive on Saturday January 30, 2021 @12:28AM (#25966448)
If you make money on trades and then spend it on food, it certainly does seem like some kind of magic trick to me. Whatever money you earned must have been lost by someone else. Or does the amount of money increase when stocks go up?

Whatever the confusion is, I have it too.

Re:u/DeepFuckingValue and the GameStop Reddit mania by boring_twenties on Saturday January 30, 2021 @02:50AM (#25967169)
I make something and sell it to you for $5.

Tomorrow, you sell it to a third person for $10.

Who lost money here?

Re:u/DeepFuckingValue and the GameStop Reddit mania by recursive on Saturday January 30, 2021 @03:08AM (#25967268)
Excellent question.

Really no one I think.

I'm definitely wrong about something though. I need to think about it some more to figure out what.

Re:u/DeepFuckingValue and the GameStop Reddit mania by recursive on Saturday January 30, 2021 @10:43AM (#25969934)
A new interpretation came to overnight, as if in a dream. I don't know what's correct, but here it goes.

You and the third person both lost money in some unknown combination. Either you're selling for a lower price, or 3rd is buying for a higher price, or probably both.

In the metaphor, this is aggregated across bazillions of transactions, and ignores benefits like supply and demand are generally evened out over time.

Re:u/DeepFuckingValue and the GameStop Reddit mania by runarberg on Saturday January 30, 2021 @12:01PM (#25970692)
I think the question is flawed... Or at least irrelevant.

Since we are talking about the stock market (and stock brokers don’t make anything of value) a better question would be:

You hire a worker for $2 to make something you sell for $5. Someone buys it for $5 and sells it to a forth person for $10. Who lost money?

Now to make this simplification more accurate, there is a system in place for the $5 to $10 transaction called The stock market where there are bazillions of these transaction. Another question arises. Who is selling something for $5 when they could sell it straight to the forth person for %10? Who has is $10 and why are they paying $10 for it? How did they get that $10? Did they make something worth $10 and sold it for $10?

I think the real answer for who is loosing money is: Workers across the globe are.

Re:u/DeepFuckingValue and the GameStop Reddit mania by recursive on Saturday January 30, 2021 @12:58PM (#25971253)
Without the middleman it seems possible that some of the buyers and sellers never might have found each other. I don't know.