Q&A  |  JUL 2006

Q&A by Don Bright

Stocks & Commodities V. 24:7 (72): Q&A by Don Bright SINCE YOU ASKED Confused about some aspect of trading? Professional trader Don Bright of Bright Trading (www.stocktrading.com), an equity trading corporation, answers a few of your questions. To submit a question, post your question to our website at http:// Message-Boards.Traders.com. Answers will be posted there, and selected questions will appear in a future issue of S&C. ZERO-SUM GAME OR NOT? Q: Could one of you academics who believe the stock market is a zero-sum game explain this idea? I think if you believe the market is a zero-sum game, you don’t belong in it and should probably get a job teaching theory and not reality. The way I see it, the only way it can be a zero-sum game is if every company in the market went bankrupt and became worthless, and I’m pretty sure this won’t happen.—Madmummy A: Since I get the same question during my training sessions, let me offer the following. Imagine I took a company public a few years ago. Say we sold $10 million worth of stock at $1.00. We “made” $10 million. Imagine that investors bought stock at $1.00 and sold it at $3.00, so they made money...

by Don Bright