Wikipedia describes a “zero sum game” as: “a zero-sum game is a mathematical representation of a situation in which each participant’s gain or loss of utility is exactly balanced by the losses or gains of the utility of the other participants. If the total gains of the participants are added up and the total losses are subtracted, they will sum to zero.”
In other words, a zero sum game is when one participant’s winnings is equal to the other participant’s losses. And so in some cases, a game of poker can be a zero sum game. In some cases, chess and checkers are also zero some games.
I actually never knew there was a term for such games and competitions… until I began to trade stocks. The Stock Market is a huge Zero Sum game. In the Stock Market, when somebody earns/wins money, it means somebody lost money: and when you lose money, it means somebody won your money and put it in their pocket.
In a way, playing the Stock Market is like playing poker with millions of other people. It’s also a legal and “respectable” way to rob people blind of their money: so I learned the hard way. By the way, “investing” and “trading” are two very different things.
About a year ago, I was wondering if there were any phone apps that lets you play the stock market, right on your phone. I found a few, and I downloaded one app called “Robinhood,” which doesn’t charge commission. I funded my Robinhood account, and began buying a handful of stocks: knowing absolutely nothing about the Stock Market. I bought mostly pennystocks. I also started using Stocktwits, which is a very popular social platform for stock traders. It’s actually fun. As you can see from the picture above, I didn’t last long. After a few weeks of losing my money, I quit and took my losses. I figured that I lost all that money because I jumped into something I knew nothing about. And so I went to learn shit.
I spent about 7 months trading in the currency market, which is easier to learn. The currency market is a 5 Trillion dollar market. It’s the market where George Soros made a billion dollars betting on Thai money against the US Dollar. People get on George Soros’ case because he also made a billion betting against [“shorting”] the British Pound during an economic recession. And so while millions of British people became poor, lost their homes, and went hungry, George made billions. Life itself is a Zero Sum Game. And I love it! I love the idea/concept that you can win and force mundane people into poverty, hunger, and misery. I love that you can legally steal their money, rob them of their life savings, rob their mundane children’s future college funds. The financial markets is one of humanity’s greatest inventions!
The trick to trading is learning how to read the graphs [called “charts”]. Once you can read the graph, you can read and understand any financial instrument: stocks, currency, commodities, metals, bonds, futures. Each bar tells a story. The story is a fight between two opposing forces, two opposing teams: the Bears and the Bulls; and the Supreme Law that governs the fight and struggle between the two sides is the Law of Supply & Demand. The Bulls want to push price and value Up to gain their profits. The Bears want to push price and value Down, to buy more.
The Law of Supply & Demand dictates that when something is abundant in the market, it decreases in value/price; and when something is scarce it increases in value/price. And so, when a currency has been overbought, the value and price of that currency will begin to climb up, and the Bulls will dominate. When currency has been oversold, the value and price of that currency will drop, and the Bears will dominate. Usually, Bulls are represented by green or blue bars and Bears by red bars.
And so, I spent 7 months trading the currency markets, and studying everything I can about this subject matter. All of these graphs, bars, money movement, are merely the superficial surface of an ocean: to my surprise, there exists the unseen philosophical depth which 90% of the people in the markets never dive into to see. I dove into the depths of the “Market,” because I love philosophy, and I wasn’t disappointed. What I ended up learning, resonated with me.
Into The Deep
There is a “religion” or prevailing belief-set/memeplex in the Market and in the greater mundane economic science itself, roughly called “EMT” or Efficient Market Theory. Basically, the gist of EMT are the following: 1) The Market is an entity, 2) the Market is a system, 3) the Market utilizes information, 4) the Market uses this information to evolve over time to become more efficient. It gets far more complicated, so complicated that many people from the EMT camp have won Nobel Prizes in economics.
The prevailing religion in economics and the market in a way is the belief that an economy or a market is like a living tree, which evolves and grows. And so, the objective then – based on this belief – is that if you study how this tree functions and grows, you can help the economy become better or you can make money in the stock market.
This religion of EMT is actually the same Neorealist vector modern Statism and Statists come from. In Neorealism [the modern view of the State], the State – a country/nation – is seen as an entity, an organism. And as such, it consumes information, metabolizes resources, evolves, competes for territory, struggles and “behaves/interacts” with other such organisms [states].
The despised “heathens” of this prevailing religion of economics and statism are the “Behaviorists.” The Behaviorists are “neofundamentalists.” They keep things simple, and regard the fundamental substrate of a market, economy, or state: the Human Being.
And so Behaviorists believe that it is the human being, and human nature that influence and dictates the movement and behavior of the stock market, the economy, and the state; not scientific laws, not Nobel Prize winning economic theories, not information, not their academic priests. In other words: the economy, stock market, and state are not “organisms” and they aren’t evolving. Furthermore, the Behaviorists believe that in essence, the mass of human beings are a blind and idiotic mass which – as a collective mass – function on the most basic of parameters: Greed, Fear, & Need. I’m naturally a Behaviorist.
The Market From A Behaviorist Vector
Each bar tells a story: the story of fundamental – blind, idiotic herd mentality – human Greed, Fear, and Need; of human behavior. We’re looking at a snapshot of two countries’ economies: Great Britain versus America in the above picture and their currencies.
The EMT believers like to do their magical divination act to predict the Future movement of the market, which they call things like “fundamental analysis”. Fundamental analysis is when you basically study the day’s news, figure out the health factor of the economy, study the corporation you are buying shares of, study the words and advice of “experts,” so on and so forth. Then, with your collected data, you buy a stock or invest in a company, having “predicted” the future movement of the market.
As Behaviorists, we just ride the momentum of the Herd. It works pretty simple. For example, a bank may sell some of its money to a foreign country, and thus cause a tiny red bar to form. This causes some people to become Fearful of losing their money, so they remove their money: which helps push the red bar down further. As the red bar gets bigger, this causes more people to Panic, and they remove their money. This causes more red bars to form. This in turn causes a huge amount of people to panic, and they remove their money so as to not lose their hard earned cash.
And when the red bars drops down to a cheap level, human Greed comes into play where groups of people will buy the stock/currency. This makes a tiny blue bar. Others will see the little blue bar, and they’ll put in their money as an attempt to make extra cash. This pushes the blue bar up further. Which excites the Greed of the Herd, and they all gradually come back in to buy more stock or currency. When the blue bars hits a certain high level, human Greed comes into play again, where smart traders will cash out and take profit. This will shrink the blue bars and cause it to drop. And the cycle of mass idiocy happens all over again.
The cool thing about this is that the momentum of the Herd, follows the same basic principle as Sir Isaac Newton’s Law of Motion: “In an inertial reference frame, an object either remains at rest or continues to move at a constant velocity, unless acted upon by a force.” In other words – roughly stated: things like to keep moving in the same direction, and it’s hard to stop a moving train of human greed and fear.
And I think it’s all funny actually. Because you have all of these mundanes investing in a company’s stock/share. They’ll buy Apply stocks, and have all these nice things to say about the company for example. They love Apple products, and so on. But when the company’s stocks drop, they panic and cash out. Why? What happened to your EMT? What’s up with your fundamental analysis? What’s up with your prediction of the market? I thought you loved Apple Inc and its products? Why bail out? Why not all the millions of you come together and say: “Look everybody, we all love and cherish Apple Inc and iPhones, let us each pump in thousands more dollars to buy more shares to keep our beloved Apple stocks up high! Make it the Best and make us all big money!” Why do they cash out and abandon ship?
There was a time – in the very old days – when Sears [as in the Sears Tower and shopping malls] was the beloved Corporation of America: the apple in America’s economic eye. Now it’s on its death bed, at the verge of going bankrupt. It’s stocks are near worthless, or will become worthless very soon. What’s up with that? Why did you guys abandon ship? I thought you loved Sears? Because human nature dictates that everyone is looking after their own asses [assets].
The common, average, mundane person, does not think of their neighbor’s needs, welfare, wellbeing, and prosperity; no matter how altruistic or numinous we want to believe we are. Because when the shit hits the fan, we look out for our own asses. They think of their own need. And with the case of Sears, the need is to cash out and get rid of those stocks so as to save your own money. And you are merely one of millions and millions of people thinking in the same – self-centered – way. Such is the Nature of the Human Being. And with a zero sum game, all that money lost because of Sears’ great fall, went into other people’s pockets and made them rich. Can you believe that: there are people that get rich off of the herd mentality and self-centered nature of the Mass? It’s a beautiful thing.
Back Into The Market
I failed at trading stocks in the stock market a year ago, because I didn’t actually know anything about stocks and the stock market. So I spent time in the currency market, learning stuff. The currency market is like an ocean compared to the actual stock market, which is like a lake. Money wise, in the stock market you have something like 2000 corporations [New York Stock Exchange] and roughly 200 billion dollars moving in that Stock Market at any time. The currency market is made up of not banks and corporations, but of countries that open themselves up for other countries, banks, and people to buy, sell, and trade their currency; thus helping their economy. And so, the currency market; in size of money terms; handles the movement of roughly 5 Trillion dollars.
Smaller lakes, means more competition and bigger sharks. With the currency market being so huge as it is, no single country, bank, or group of corporations have the ability or power to manipulate the currency market [to their advantage]. But with the Stock Market, you do get market manipulation, such as “pump and dump” scams.
Pump and Dump scams are cool! Cool if you are observing them, that is, and not the victim of one. Pump and Dump is – for example – when a company or rich guy hangs out in a stock [usually pennystocks]. They’ll buy ads and hype the stock they are stalking. Dumb people will buy into the hype and begin to invest their money into that stock. Then the company or rich guy will gradually buy more of that stock so as to make it appear as if that stock is indeed good and growing. This triggers people’s Greed factor, and more people buy that stock. Which in turn pushes the value of the stock up higher, and higher. And then, suddenly: the company or rich guy will sell 100% of all their shares to take their profit, and the money of the dumb people. That stock drops and flatlines, leaving the dumb people with the baggage and losses. I love watching pump and dumps happen, especially when you watch it live on StockTwits. It’s hella funny and better than trolling!
It turned out to be a good idea to learn how to trade in the currency market, where it’s safer, and where there are no sharks and scams. After learning how human behavior works in the Market, and learning how to read charts and bars, I recently began “Paper Trading” the stock market to practice. Paper Trading is practice trading with fake money. It’s something you’re suppose to do as a beginner to learn how to trade for at least a year.
What I do now is go to Finviz, where you can scan every stock in the market based on various criteria for free. Amazingly, everything [the terms used] on the Finviz page I can now understand! After 6-7 months of study and practice in the currency market. I look for “gappers.” Gappers are those stocks that jump up or down significantly where they make a visible gap:
In the above picture, I was paper trading some stock called “ADSK.” You can see the gap: there is a big green bar that jumped up, way beyond the Bollinger Band even. Below the Bollinger Band, and underneath that gap jumping green bar is a huge Volume bar.
The Volume bar indicates how much money and people are in that bar. Usually a gapper comes into being when a big company, or big money, is investing into a stock. They use their corporate money to buy the stock. But they can’t use all their cash to buy all the stock they desire at one time, as this would manipulate the market, which is illegal; and because stocks aren’t as liquid at such great quantity. They have to gradually buy stocks, over the course of some time; ease into the market, if you will. This causes many people to become greedy, where they see the big green bar, and so they’ll jump into the trade and invest money, which will help push the bar up further, giving it some momentum.
So when you trade a green gapper, you buy shares of that stock, just after it has gapped, and you only have to wait 15-30 minutes to an hour to make a good amount of money. I wake up at 6AM in the morning [CA time] to search for gappers. 6AM California time is when the New York Stock Exchange opens market. When I find good gappers, I jump in, buy my shares, and wait for 30 minutes or so. It’s paper trading, so it’s not real money.
I use tradingview.com, which lets you use and see stock charts for free. In the above picture I made $1,800 [virtual money] off of SNDX stocks, and that only took about 30 minutes.
I cashed out of my SNDX paper trade, and stayed in the ADSK trade for a while. You can see the tiny red bar in the previous picture has become a green bar in this picture, in only 15 minutes; which translates into profit.
I cashed out around $700 [fake money] profit; which took only about 30 minutes to make. After many months of study and practice, that day I was able to make about $2,500 in about one hour during the morning.
I’ve grown to really, really, like the Markets. Different markets for different reasons. I love the currency markets because it’s fun and lucrative. I love the stock market because of the games people play in it. You get to see human nature in action. The greed. The fear. The mindless mass. And when you gain a good understanding of your market and of human behavior, you can take advantage of that mindless mass. You can make a lot of money for yourself and family. And since the Markets are a zero sum game, when you make a lot of money, it means some where in the world someone lost their savings… some family has gone hungry… someone’s home will be foreclosed. Yin & Yang. To every action there is an equal reaction, right?
And it’s Fractal. Because Life itself is the Great Zero Sum Game. When one nation wins, another has lost. When a nation has grown to become a rich nation, other nations have become poor. When a people in one country have their needs met, there are people in other countries who are living without electricity, clean drinking water, food. Isn’t it Beautiful? Don’t you feel wonderful, being in the comfort of your First World home, surrounded by food, junk food, $15 per hour minimum wage, new cars, fancy clothes, computer, 5G internet connection; knowing that the life you enjoy and the things you have: causally made a hundred poor people in developing nations die of starvation, die of easily curable illnesses?
I love it. I love knowing that as an American, I am a member of one of the world’s most powerful and richest nations; along with Europe and European people. Isn’t it wonderful to know this? To know that our people and nations, won the Great Zero Sum Game at the Expense of billions of other people? Don’t you see the Bigger Picture? That we as a people and nation manifested what we have, because we raped and pillaged, enslaved and used the Third World and it’s people? We won!
And the funny thing is we – as in us and our First World Developed Nations – are still currently raping the Third World and its people blind. How? It’s called the religion of Climate Change. We have to cut down on our carbon emissions! Which is cool for a rich developed country mind you. What you don’t realize or think about is that the same demand is placed on the Third World and its people: rather than be able to burn cheap coal and fossil fuel to power their poor countries, we sell those dirt poor Africans expensive solar cells to power their homes. Which solar cells barely make enough electricity to power two light bulbs! You smart people might ask: “Okay… but where do dirt poor Africans get money to buy solar cells to power their poor homes and villages, and electric cars from?” Good question! From the IMF and the World Bank, where else? And those of you who are smart will say: “Hey… wait! Aren’t our rich First World countries the main lender / money source of the IMF and the World Bank?” Why yes, indeed.
In a zero sum game, whenever there are winners, there are losers. It’s a fact most of us in our Developed Nations don’t want to think about or acknowledge. We’d rather brush it under the rug, and go about our day, like everything is all cool. The funny thing is: the world is as it should be and it won’t change… because we – Humanity – are the source of our human world. Some of you might say that money is the root of all evil. What is the root of that money? Some of you might believe that States are evil. What is the root of the State? Some of you might believe that Capitalism is evil. What is the root of Capitalism? Some of you might think that war is evil. What is the root of war? If not us. If such things are evil: then We are the Source of that Evil. Revel in your Human Nature. “He who stands atop the highest pyramid of skulls can see the furthest.” –BBS, O9A.