Kardec Trader argues swing trading and long-term investing build real wealth far better than day trading because they capture compounding. Investors who bought during the 2008-2009 crash made outsized returns. Apple bought at $120 and held 10-20 years compounds as the company grows from hundreds of billions to trillions.
I've made way more money swing trading and investing than I have trading. Trading to me is just an income. It's not a way to generate wealth. You cannot beat the compounding effect of the stock market. You cannot beat the fact that you don't have to manage your risk super tight like you do in a day trade. If you look at all the major crashes and corrections, if you just bought the high and you did nothing, or if you just sat on your stocks and you panicked on the way down and you did nothing, then we eventually get to that high. What do you think is the result of someone who bought in 2008 or 2009? Not only are they profitable immediately, it is a stupid, stupid amount of money. Say Apple falls to 120 and I buy Apple 120. Do you think I'm setting a stop limit there? I don't care. I'm going to hold that for 10, 20 years and it compounds and compounds. $800 billion companies become one and a half trillion dollar companies. They become two trillion, three trillion dollar companies. Now we're knocking on four. You cannot beat that type of effect with day trading.
