Naive question..

Discussion in 'Trading' started by mcgene4xpro, Jul 25, 2012.

  1. Hello,

    These days, we all know that there are a financial crisis that affect many if not all individuals, institutions and countries. We know the stories of bankrupted banks, institutions, and even countries.

    Now the question.. If some is losing his/her/its money, this means someone else gained it. Otherwise, you are saying the wealth could vanish and disappear without been exchanged or transferred.

    So, if all those are losing, who are the ones are gaining?

    Also, if their gain is exponential as i think, will we reach to a Plataea phase where no more gain could happen. Simply because the wealth has been hypothetically transferred completely to one side(s).

    Is this true.. I know this understanding is very superficial but did not touch something real here?

    Thanks
     
  2. You lack an understanding of economics and econometrics.

    You may wish to look into two things:

    1. How values are agreed upon, and

    2. Behavioral Finance. The website has some good brief articles on principles.

    We are in a major global Depression and it will last 10 to 12 years more.

    If you have a financial planner, you may wish to terminate the relationship.

    As many are finding out, there is no financial integrity among the participants.

    After understanding, comes an ability to have immunity and to gain the ability continue to build personal wealth. No one can stop you.

    Financial systems expand and contract by the mutual agreement of the players. To build wealth all the time you have to extract capital from the financial system.

    There is nothing wrong with being ignorant. But you cannot remain ignorant; it is incumbant upon you to gain the knowledge and skills required to become imune from the global situation.
     
  3. emg

    emg


    those that are gaining (big traders, institutional) are using the money to pay their bills or luxury stuff, while small traders keep reloading and losing. They just lose!
     
  4. sheda

    sheda

    Be more specific...losing money concerning what product? Ignore EMG, he is mentally ill.
     
  5. I meant the value of for example USD decreased dramatically during the last decade. So, does it mean this value transferred to GOLD for example. So, people who have the gold now are the ones who gained, right?

    IF any knows educational resources on this specific question..

    Where did the wealth accumulate in the last 10 years?
    Who were the winners during the last 10 years?

    If we have loser countries, institutions, individuals, WHO ARE THE SPECIFIC WINNERS?
     
  6. emg

    emg



    Here is a trivial question for u. Hopefully, this question will answer to your question above



    Why is the value of yen skyrocket against the dollar when japan interest rate at 0% for more than 20 years?
     
  7. You're wrongly assuming that each AND EVERY "long position" is offset/hedged by a "short position". :D
     
  8. No idea.. if i inverse your question so i might have a hint for the answer.

    A: It might be because USA economy did much way worse than the economy of Japan. :D

    I am reading this article now

    http://harvardmagazine.com/2010/07/after-our-bubble?page=0,2
     
  9.  
  10. If you assume that this is not true..

    So, how it is working?
     
    #10     Jul 25, 2012