Trading investment strategies, playing a sprint, it can be a one-meter race or a hundred-meter race. They will do all-out sprints in a short period of time, and constantly find the best path in the route. Do your best to avoid any obstructions on the runway . In other words, investors who use trading focus on short-term and medium-term performance, so they try to switch between different holdings through continuous trading. In contrast, time is not a friend to them. , but pressure, even the enemy. But for most retail investors, I found that it turned out to be a sprint competition with everyone. It's just that when I want to understand why they don't choose to run long distance events, they tell me:
If you can win the prize in the sprint, why should popular database you spend more time waiting in the long-distance running, and there is no way to ensure victory. In other words, who wants to get rich slowly if you can get rich quick? It seems to make sense. It's just that in the end, getting rich didn't work, I don't know very well, but I'm pretty sure of the bad mood. The mood of investing depends on your choice When I looked at the odds of profit in the U.S. stock market between January 1927 and September 2021, holding it at different times. image-8 Produced by the author I have found that if the investment sprints, the probability of making a profit is judged as the prize. You are participating in one of the most difficult events in a sporting event. Because in different holding times,
holding a one-day trade has only a 52% chance of making a profit. No matter how skilled you are, when you choose to buy and sell the next day, the average probability of being able to make a profit is the same as guessing the heads and tails of a coin. In such a short holding time, the loss is almost By our side, how can the mood of investment be good? However, even if the holding time is increased to one month, the probability of making a profit is not high, only 60%. That is to say, if you trade once a month within a year, the probability of loss is as high as 40%, which is equivalent to Every year, I lose money for an average of five months. I can't help but wonder if I will invest because I always see losses. However, for some investors, it is very difficult to hold assets for a month without trading. It's like asking them to run a half-marathon.