I think
“Basic premise of trading is: one guy knows better than the other, so the actor takes responsibility for the risk.”
still holds, if one looks the trading as betting. In betting the loser pays the winner.. Perhaps I should have clearly stated it as ‘speculative trading’ instead of normal ‘trading’.
If you take the wrong bet you lose, if you buy a stock and liquidate it with loss, you have just lost the bet and the loss money moves to the guy who took the opposite position.
In a normal grocer example we exchange values there is always a chance for ‘double thank you’, in trading we simply bet and winner takes all so its ‘screw you, you are going regret about your position’ is the norm !
This subtle difference stumped me when I started to explore speculative trading.