Part 7/10:
The distinction between traditional investing and day trading is profound. While the former advocates long-term investment strategies tied to the fundamental value of a company, the latter often resembles betting — producing profits from minute-by-minute fluctuations without thorough research.
Numerous studies have shown that characteristics common among gamblers and speculators overlap significantly. People who invest also gamble are often overconfident in their abilities, fall victim to cognitive biases, and chase after volatile stocks in the hopes of quick financial gains.