Short-term trading and long-term holding, the seemingly simple choices hide the true intentions of investors. Short-term is trading, long-term is belief.

But reality is often more complicated. When a planned short-term operation quietly evolves into a long-term position, it is often not due to firm confidence, but rather indecision and a sense of luck playing a role. This passive shift is most likely to lead one into a cost trap.

Before entering the market, you must clarify three questions: are you really doing short-term or holding? Relative to the project cycle and market cycle, did you really enter early enough? Who will be the marginal buyer that drives the price next?

Understanding these clearly can help avoid being forced to change your stance during market fluctuations.