Short term investors are competing against their peers for a small percentage of the pie. It is not a zero sum game. Someone has to lose for someone else to win. Uncle Sam and state get their %30-%50 cut off the top. So that means just to break even, not counting trading fees, a short term trader has to better 70% of their trading peers constantly and consistently. These factors are why only 2-3% of short term traders are profitable on the up and up per individual. Not considering trading cabals, manipulation and insider trading.
Long term investors are making a bet with or against the company with less of a tax burden.
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