Day Trading vs. Long-Term Investing: Which Actually Wins?
Most investors are drawn to the excitement of day trading-believing more trades = more money. But here’s the reality:
- 80% of day traders lose all their money within 2 years.
- Accuracy rates for short-term trades (under 6 months) hover between 40-60%.
- And unless you’re consistently beating the S&P 500 across your entire portfolio… are you really making money
Sure, it feels active. You’re making constant decisions, watching every tick. But to me, that’s not exciting-it’s exhausting
Now let’s talk long-term investing. Yes, it’s boring. But boring works.
If your holding period is 4+ years and you’ve picked solid investments, your
accuracy can approach 100%. Your risk? Close to zero. The challenge? Finding those top-tier investments-because 85% of ideas still underperform the S&P.
So what’s the solution?
- Model-based investing.
The Stars Model has outperformed the S&P by over 10 percentage points annually -and more than doubles its returns. It’s simple to learn most can master it in two weeks) and leaves room for your own ideas in the 60% not occupied by TQQQ.