So... this thread has turned into discussing 'zero sum game' eh?
OK, I'll bite.
The issue of 'zero sum game' hasn't been finalized as far as I know in the world of trading. Some think it exists, others do not.
Zero sum game essentially meaning that there must be a loser of every dollar for every dollar gained by a winning trader. In forex or in stocks.
I think Soros holds that indeed it is a zero sum game. I have not made a determination, but, on the surface I would say that money has to come from somewhere it doesn't just materialize out of thin air.
And, after all, there ARE many more losers than winners so it would make sense that winners take their money through superior trading systems while not getting dinged themselves.
The subject of liquidity plays a part too in that in my understanding you can have a position in drawdown basically putting your UP/L into the negative but you only really LOSE that money if you close the trade while in the negative.
Where does your 'lost' money go then? Does it mean that someone out there is actually sitting (for example) 100s of points in the black? Must they close that trade at the same time you close your (losing) position in order to gain your money?
Doesn't make sense.
fxs