Any newbie who categorises short-term holding and trading as the same thing has a long way to go as they need to learn the difference and make a decision on which one they want to do and which one will favour them.
The newbie is right I don't think there is a different between short-term holding and trading they are just same thing since there objective will be to sell Bitcoin in a short time without accumulating and hodling for long is not even advisable to go into Bitcoin investment with the mindset of trading Bitcoin or for a short time because you might run at lost and the risk is much though people can choose what works for them.
We should not be presuming that short term traders or traders are going to sell bitcoin at a loss, so they can enter into their bitcoin trade and then they sell at a profit. They make more dollars than they had previously.
That's actually true, even though we presume that HODLing bitcoin for a longer time of maybe 10 - 20 years is good, but doesn't mean that a person who buy and HODl for 5 years can't make a decent amount. A person might buy bitcoin when its dip and HODl for a short time of maybe 4-5 years and decide to sell when the price has increased and will make profit. Even though the profit was not hug as compeard to a long time investment, but atleast we can not totally say there in no profit in short term investment.
Ultimately people can do whatever they like, including that they could come into bitcoin by presuming that they were going to trade and then convert their plan into an investment or the opposite they can come in planning to invest for 4-10 years or longer and decide to abandon ship. Frequently when we are discussing what people should or should not do, we may well be creating some presumptions about what bitcoin is good for on a general level rather than trying to tell individuals what to do, since people can do whatever they want, including dumb stuff which tends to be trying to trade bitcoin rather than investing into it.
Another thing is that if a person is really trying to transition from a poor, mediocre or even normal person (or even a desperate person which may well be the status of a lot of people who are subjected to various ongoing debasement of the dollar/fiat), then they are most likely going to be way better off to create and to follow through with a long bitcoin plan rather than fucking around trying to get in and out of bitcoin and failing/refusing to see the long term value of bitcoin rather than wanting to get their short-to-medium term payoff in dollars (or whatever might be their fiat currency). .. so yeah, there are all kinds of ways to measure profits, and surely there have been profitable people all the way up the history of bitcoin who were profitable in dollars and ended up selling way too much of their bitcoin too soon because they were too busy thinking about their short term profits, which sure they still may have done quite well.. .. but still they might not even be close to a good place in comparison to where they could have had been, and that is their choice to end up fucking themselves over and realizing that later down the road.. "whoops.. I sold too much bitcoin too soon."
Do you need an example?
Let's say there were a couple of guys who got into bitcoin about 10 years ago, so around November 2014 and perhaps the guys were in their early 40s at that time, and so one of them largely accumulated and sold small amounts along the way (Hypothetical 1) and the other one (Hypothetical 2) sold too many BTC too soon. Let's say that both of them largely accumulated bitcoin for 6 years, so they were pretty aggressive about their BTC investment and bought about
$150 worth of BTC for every week for those six years and then so each of them invested around $47k and they accumulated right around 55 BTC... so surely not bad.... Perhaps Hypothetical 1 might have sold around 10 of his BTC at various points after November 2020, so he still has around 45 BTC, yet hypothetical 2, decided to sell all of his BTC around November 2020 because he was just too stressed about his BTC, and surely he was able to get $20k each of of his BTC, so hypothetical 2 ended up getting over $1 million for his BTC, and he was able to buy some property, cars and even go on a few vacations for experiences.. He had to pay taxes too.. but sure, he still had decently good sized profits from his having had accumulated BTC for 6 years and he deserved a reward, no?
I personally believe that Hypothetical 1 would have had been much better off than Hypothetical 2 because he largely just hung onto most of his coins, but hey whatever guys can do what they like and they can follow whatever plan that they like in terms of how they might decide to manage their BTC once they reach their accumulation goal. I also think that selling large portions of your BTC is dumb, even though people can do what they like including that they may well still be in quite large profits from their decision to get into bitcoin and to get out (so they profited a lot by having had been in bitcoin), even though they end up making the wrong choice in regards to how to manage their BTC once they had spent so much time, energy and even value building up their BTC holdings over several years.
How are you going to manage your coins if you get into a situation like these two guys after 6 years accumulating and feeling that you have reached your BTC accumulation goals?
I will prefer to be in hypothesis 1 shoes that only sold 10btc and has 45btc in my custody. The reason is because bitcoin investment is worth hodli till old age when you have retired because the longer you hodli, the higher your portfolio and profits. before you can decide if you are going to pass it on to your children or start shaving profits bit by bit. If I invest in bitcoin for 6 years, why will I want to waste all my effort, time and resources to build such bitcoin investment, and start selling too much too soon.
I saw it before my own eyes how the value of bitcoin increased during that six years duration that I was investing aggressively. If I don't want to add more to my investment because I have reached my bitcoin target, I will prefer to hodli and watch the value of my portfolio increase exponentially due to the size, and if at all shave very little profit once in a blue moon.
This is the mistake some investors will make by selling to much bitcoin too soon without considering the value of bitcoin in future, because they got carried away with too much profits in fiat and couldn't control themselves, I will call that mismanagement of bitcoin investment because there was no sustainable withdrawal plan. It's good we know all these things so that one will not regret his actions in future.