Many people have asked Penny whether it's more profitable to trade short-term or to invest in the medium to long term?
In fact, the two are fundamentally different, each with its own profit logic:
Short-term trading: relies on high win rates + strict stop-losses, accumulating small wins for big wins.
Medium to long-term investing: relies on major trends + time compounding, exchanging patience for space.
However, regardless of the method, one must first accumulate enough successful cases; otherwise, 'profits and losses stem from the same source' is just an empty phrase.
The core of profits and losses stemming from the same source is accepting that 'losses are the cost of profits':
In short-term trading, it is impossible to only make profits without losses, and in medium to long-term investing, it is also impossible to buy at the lowest point.
Many people fail in investing precisely because they refuse to accept this reality—wanting both short-term high profits and long-term steady gains, resulting in missing out on both ends.
The real solution:
1. First validate the strategy: use historical data or small funds for testing, ensuring that your method can consistently generate profits.
2. Accept reasonable losses: keep losses within the planned range, not allowing a single failure to affect long-term logic.
3. Maintain consistency: strictly adhere to discipline in short-term trading, ignore noise in long-term investing, and avoid jumping back and forth between the two.
In short, if you keep wanting both and more, the final result is often that you end up with nothing at all.
