Sal

The critique in the excerpt assumes that holding onto a stock long-term is always the best strategy, but it completely ignores survivorship bias and the reality that most stocks do not appreciate indefinitely. 1. Most Stocks Decline or Go to Zero Historical data shows that the majority of stocks underperform or even go bankrupt over time. For every long-term winner like Apple or Amazon, there are hundreds of stocks that have lost 90%+ or gone to zero (e.g., Lehman Brothers, Enron, Kodak). Holding blindly means risking catastrophic losses in cases where the stock never recovers. 2. Selective Memory & Survivorship Bias The author assumes that because one stock went from $10 to $40, it was "wrong" to trade in and out. But in reality, most stocks don’t follow this trajectory. Many decline, stagnate, or never return to their previous highs. Long-term holders only remember the winners but ignore the countless stocks that failed. 3. Risk of Holding Too Long A long-term investor often faces massive drawdowns (e.g., Amazon dropped 90% in the early 2000s before recovering). Many traders prefer taking consistent profits rather than sitting through brutal downturns. 4. Adaptive Trading vs. Blind Holding The trader in the excerpt locked in profits consistently rather than assuming the stock would keep rising. A stock that goes from $10 to $40 may just as easily crash to $5 before reaching that level again. Active traders can adapt to changing market conditions, while long-term investors risk riding losses unnecessarily. 5. The Fallacy of “What If” Thinking Saying the trader missed out on a $30 gain assumes perfect hindsight—which no one has in real-time. If the stock had collapsed instead, the same logic would suggest the trader was smart to take smaller profits. Final Verdict The author’s criticism ignores market realities: ✔ Most stocks decline over time ✔ Not all stocks will appreciate indefinitely ✔ Long-term investing is only wise if you pick the right stocks ✔ Active trading provides risk management and liquidity Day traders may not always maximize gains, but they also avoid huge losses that long-term holders often suffer.