Trading vs investment

This post is more “we believe” than something backed up by numbers.
It is easier to make money if trading is limited, however the temptation is too high to give up trending altogether.
Trading potentially offers higher returns, but it is very high risk endeavor. It is better if swing or day trading is a small part of activity.
Overall 41% of traders took money from the remaining 59%. The one-timers lost 92% of the time. On average traders make less money than the underlying index.
Santa-Claus rally, First day of each month, Index rebalancing event, News release, First 30 min of each trade day, Stock split, M&A – successful traders use anomalies.
Do not time market. Overconfidence results in excess trades, with trading costs denting profits. Contrarians loose more money than they earn.
Following trends is relatively safe. The longest lasting trends generally occur where emotion is the lowest. Accordingly design time spans and check volumes.
Investment strategy is not an algorithm, but a business plan and it should be as accurate as a business plan. Algotrading is hard and should be left to professionals.