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've found that if you sprint in investment, the chance 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 a trader 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 popular database 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. But if you want to put yourself in a happier mood for the results of your investments, a month is too short, and you have to try to keep running for longer and longer.
If investors can choose to hold for one year, they can have at least a 70% chance to embrace profits. Not to mention, if you hold it for five years, you have an 80% chance of making a profit. Happy and profitable investing is actually not difficult. Investors who have held assets for more than 20 years in the past all opened their accounts with a smile and looked at the lovely figures. The reason is that they chose not to participate in short-term events where a group of people crowded their heads, but to participate in a comfortable roaming. A time-limited marathon.