Is investing a zero sum game

These investors will see an increase in their wealth.Rather, it describes any game in which one side wins and the other side loses.The idea, however, comes from economics and is neither negative nor positive.A single new invention or change in productivity increases value.However, the stock market has one main difference and that is time.

But often (or at least, sometimes) the overall gains in the new far outweigh the loss to the old.The loser in such changes are those in the side of the economy that is replaced by the new.Options and futures are zero sum games because the wining of one investor is the lose of another investor.Guesswork, it turns out, is what being intelligent is all about.Even underperforming active funds can still generate value.

Some trading is a zero sum game.Here, the profit for the participants doesn't come from the stake of losses by other participants, but from the value created by the company.It's not i win because you lose. we can all win.Let's take a look at the economy as a whole.Options are a zero sum game.

But this isn't the case.