Active Trading or Passive Investing
- Capstone Trading

- Oct 6
- 1 min read
Recency bias makes passive investing look unbeatable right now. Markets do have cycles though! It is something we can count on over many centuries. Even when mankind tries to distort those cycles and tilt them in one direction, they re-emerge.
Short term trading systems allow a trader to participate in market moves without having to hope that the market doesn't crash. It takes massive delusion to hope that a trend will last forever.
Fear of Missing Out (FOMO) can make traders and investors irrational.
Short term trading allows traders to participate in fractional ownership and incremental risk management in the markets with algorithmic trading systems.
Gold Gap Continuation is an example of a day trade in Gold shown below. The idea of investing in Gold right now at all-time highs is certainly a challenging investment to make. However, participating in these moves with a strategy offers the opportunity to participate while managing risk.



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