Short-term trading, especially day trading, is extremely risky. The root of this lies in the fact that price fluctuations in the short term are almost random, making it difficult for subjective human judgment to gain an advantage.
In reality, many traders harboring dreams of quick wealth often find themselves further and further away from breaking even. Even though there may be a few lucky ones who manage to exit in time, it is hard to change the inherently high risk nature of such trading.
For investors with limited capital but a desire for high returns, trend-following strategies may be a better choice.
This strategy does not require haste; sticking with it for a year or two may yield considerable returns and is suitable for long-term holding.
Its advantages include: on one hand, the long holding period does not exhaust energy excessively, having a minimal impact on daily life;
on the other hand, the key to trend-following is accurately identifying the true long-term trends.
From a macro perspective, the global economy has continued to weaken over the past few years, and geopolitical conflicts have intensified, indicating that the economic cycle has entered its final phase.
Against this backdrop, continued deterioration of fundamentals is a high-probability event, which also provides room for trend-following strategies to unfold.