Why is frequent trading doomed to fail?

A chicken dealer buys a chicken for 10 yuan and sells it for 11 yuan. Buys another chicken for 12 yuan and sells it for 13 yuan. How much money did the chicken dealer make?

The answer is a loss of 1 yuan. Because if the chicken dealer buys a chicken for 10 yuan and waits until 13 yuan to sell it, he could make 3 yuan. But now he only made 2 yuan.

The chicken dealer buys a chicken for 10 yuan and sells it for 9 yuan. Buys another chicken for 8 yuan and sells it for 7 yuan. How much money did the chicken dealer lose?

The answer is a profit of 1 yuan. Because if the chicken dealer buys a chicken for 10 yuan and waits until 7 yuan to sell it, he would lose 3 yuan. But now he only lost 2 yuan.

So, frequent trading is not the problem; the problem is whether we are currently in an upward channel or a downward channel.

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