Why is long-term investing more successful than short-term trading?
Long-term investment is the result of substantial capital fully engaging in the market, with a strong will that is not easily changed once formed. In contrast, short-term trading involves various funds frequently entering and exiting without a clear stance, making it erratic.
If we were to evaluate the market participants, ultra-long-term investors are like dealing with sages; they are honest, upright, and willing to contribute.
Long-term investors are gentlemen; at least they won’t deceive you.
Medium-term investors are ordinary people; they may occasionally have a slight emotional response.
Short-term traders are generally of poorer character; they love to lie and boast, but they still have some conscience.
Day traders are akin to dealing with a bunch of beasts; they not only lack integrity but are also lazy, hypocritical, cunning, and ruthless.
Therefore, the most important thing for a person is to have self-awareness, to accept their ordinariness, so they can make the most advantageous judgments for themselves.