The overall market sentiment is quite poor, offering almost no profit-making opportunities for trend trading.

It can be said that those who truly follow the trend and trade in market waves are most likely taking a break at this point in time.

However, the general desire is to make money every day.

In this somewhat unappealing adjustment phase, short-term trading has become the only way out.

Whether short-term trading is a viable path, a bright avenue, or a perilous bridge over the flames, that is the question facing countless retail investors.

This is because, from the perspective of the game of existing capital, retail investors are bound to lose in the game of short-term trading.

The essence of short-term trading tends to be a pure capital game, or what could be termed a zero-sum game.

Chips and capital exchange with each other, forming the pattern of short-term trading.

If it were an increasing market, with more funds coming in than going out, the success rate of short-term trading would be relatively high.

Unfortunately, the current market is mainly about the game of existing capital.This means that any capital that enters the market will eventually have to leave.

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Once the capital leaves, it's like a huge pit has appeared, and the funds of retail investors simply cannot make up for the pit left by the main force capital.

Therefore, many stocks experience a situation of shrinking volume and falling prices after being hyped up.

In a market with a fixed amount of capital, retail investors must understand several core points.

Firstly, the direction of price fluctuations is controlled by the main force.

Retail investors like to chase rises because they believe only what they see.

When the price falls, they may not believe that it will rise again and find it incredible.

But when a single day's rise changes the three views, they think that the main force is still there, the stock can be done, and it can continue to rise.

In fact, the direction of price fluctuations is not determined by retail investors, but by the main force.

Whether retail investors follow the trend may affect the decision-making of the main force, but retail investors are always not the helmsman of short-term game, but a follower.There would then be a problem: when retail investors buy in large quantities, the main force can smoothly exit.

And when retail investors do not enter the market and choose to wait and see, the main force can boldly push up the price to lure retail investors.

In this game of unequal financial strength, retail investors are always at a disadvantage.

Secondly, it is highly likely that the main force will withdraw their money and leave.

Do you think those who trade in the short term, who speculate in the short term, will stay for a long time?

Definitely not.

Even if a stock continues to rise in the short term, it is a result of capital relay, and it is unlikely that a main force will repeatedly do it for a long time.

Short-term trading is inherently a quick, flat, and fast way to make money and leave.

Many people treat short-term trading as a wave, as a long-term trade, which is a big mistake.

Retail investors are prone to turn short-term trades into long-term ones, which is a big taboo in zero-sum games.The reason is also very simple: short-term trading is a game of chips and capital, and it is meaningless to always hold onto the chips.

Once the following orders become fewer and fewer, holding onto the chips means a very high risk.

Therefore, when the retail investors are impulsive, the main force has naturally started the plan of retreat.

When retail investors see a big bearish candlestick, the main force has already fled.

Thirdly, the risk of T+1 is unavoidable.

The biggest risk of retail investors doing short-term trading also comes from the T+1 trading system.

The reason why the main force can make money by doing short-term is also due to the T+1 trading system.

The main force can achieve a disguised T+0 in various ways, thus harvesting the "leeks" (a term used to describe inexperienced investors).

The well-known short selling is just the tip of the iceberg.

Buying on the same day, without the right to sell, means that if there is a risk, there is no opportunity to run away at the first moment.If there is a significant drop on a particular day, followed by a gap down the next day, retail investors are prone to incur losses and exit, or become trapped for a long period. At this juncture, if the main force reverses its position to go long, taking positions from retail investors, it can make additional profits.

In summary, retail investors will face repeated trials of heaven and earth, discarding their positions amidst fluctuations, or being left bruised and battered. Short-term trading is an outcome where multiple parties cash out, and retail investors foot the bill, especially for those stocks with low trading volumes. Stocks with trading volumes in the hundreds of millions or billions are also the battleground for the main force's capital game. However, for those stocks with trading volumes in the tens of millions or a few hundred million, it is almost a continuous process of the main force bleeding retail investors.

It may seem that the profit effect is good, but in reality, there are fewer profits and more losses. Moreover, retail investors are prone to attribute the problem to themselves, overlooking the inherent issues. They may mistakenly believe that there is a problem with their trading operation techniques, but in fact, this is a common issue, the essence of the game. It is not just human nature, but more often, it is caused by the inequality of chips and capital.At the poker table, the person holding 2 dollars can never win against the person holding 2000 dollars.

The inability to win here does not refer to the outcome of a single round, but rather the ultimate fate of remaining at the gambling table.

In fact, if one thinks carefully, it will be clear that the outcome of short-term trading is destined to be more losses than gains.

The main force wants to make money, the market does not have an increase, and it also has to bear the accumulated handling fees.

This is just like going to the casino to play, and it is a principle that long-term gambling is bound to lose.

However, it is impossible to lose every round, and there will always be some skills involved.

This makes many people obsessed with short-term trading and completely unable to extricate themselves.

Even if the market environment is very poor, it is impossible to hold a few trading days empty, because it will itch.

This is the biggest danger of short-term trading, there is always an opportunity, but the difficulty of accurately grasping the opportunity is very large, and it is easy to make mistakes.Short-term trading itself is against human nature and is a game of the big fish eating the small fish.

Even though many people understand this principle, they still engage in short-term speculation because it brings happiness, even if they lose money.

Not buying chips means there is no possibility of making money. Since there is no money to be made, why bother with stock trading?

But this logic itself is wrong.

Investment must be made in certain specific environments, making specific decisions to earn excessive returns.

Those who trade stocks in a bull market and rest in a bear market are definitely more likely to win than those who are busy with short-term trading every day, and they are more relaxed.

Short-term trading will become increasingly difficult in the face of increasingly mature programmatic trading.

Because programs are much more reliable than human brains, they only execute mechanically and are not prone to errors.

Most programs are also made based on historical data testing and verification, and their accuracy is higher than human decision-making accuracy.

Short-term trading will gradually evolve into a confrontation between humans and machines.This is no longer just a matter of the size of the funds, but more about the gap in trading capabilities.

Short-term trading will be like walking on a tightrope, and it will become narrower and narrower, not the mainstream trading trend of the future.

The essence of investment is not only about stock selection, but also about timing.

However, this timing is not specific to a short-term point, but a phase, a stage of a trend, a certain stage within an investment cycle.

When you look further, you will naturally make the right choices.