[etep]

People like to say the market is a zero sum game, but I have always been suspicious of this truism.

Its fair to say that participants can leave the market, but in practice that isn't what we see. In practice there are firms doing this trading, and they are staying in business, and obviously making money.

Are they fleecing the little guy then? This explanation falls flat for me, i.e. for the amount of money they seem to be making, it would take a lot of small time participants losing everything every day. Most people I know aren't even active traders.

So why is it an accepted truism that the market is zero sum?

[jacobr1]

The missing puzzle piece here are dividends. Sure some people buy high and sell low and thus take a loss. But the market as whole can increase in value due to the external growth and profit.

[sidlls]

>Are they fleecing the little guy then?

Yes, more or less (although that's just one way they make money, and probably not the most lucrative) And fortunately for them there are plenty of "little guys" ready to enter the market on a regular basis.

[etep]

My point exactly, not the most lucrative. So what remains is the implicit assertion they are fleecing the big time guys. And somehow the big time guys remain in business... so what's going on?