đ Long-Term or 5-Min Trades? Hereâs What the Math Really Says
Is short-term trading worth the stress? The numbers may surprise you - long-term wins more often than not.

â±ïž Which Trading Style Performs BestâStatistically?
When it comes to trading, thereâs a battle as old as the markets themselves:
Long-term investing vs. short-term (intraday or swing) trading.
Many are drawn to short-term trading for its adrenaline and fast gains, while others prefer the stability and compound power of long-term investing. Soâwhat does the data say?
đ Short-Term Trading: High Risk, High Emotion, Low Consistency
â Key Stats:
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Over 90% of day traders lose money within their first year (according to multiple studies including a comprehensive analysis by the Brazilian stock exchange).
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Transaction fees and slippage drastically reduce profits.
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Requires constant screen time and emotional resilience.
â ïž Why Itâs Risky:
While short-term trades (e.g. 5â10 minute scalps) can offer quick profits, they come with high volatility and limited margin for error. Algorithms and institutional traders dominate this space, leaving retail traders with slim odds.
đ Long-Term Investing: Statistically More Reliable
đ Key Stats:
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The S&P 500 has delivered an average annual return of ~10% over the past century.
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Investors who held for 10+ years rarely experienced a loss, even through major downturns.
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Lower frequency = fewer fees, fewer mistakes.
đĄ Power of Compounding:
The longer you stay invested, the more you benefit from exponential growth. Time smooths out market noise and corrections.
đ§ So⊠Which Oneâs Better?
Objectively and statistically, long-term investing wins in consistency, risk-adjusted returns, and psychological sustainability.
However, success in any strategy depends on the individualâs:
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Risk tolerance
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Time availability
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Emotional discipline
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Knowledge and tools
That said, hybrid models (e.g., swing trading + core long-term holdings) are gaining popularity for balancing risk and reward.
đŹ Whatâs your styleâfast trades or long-term conviction? Letâs discuss below!
đ For more data-backed insights like this, stay tuned to trafy.io!