$Xindong Company (02400)$ People who engage in day trading are essentially betting on one scenario: that the stock will fluctuate within a certain range for a period of time. So if a day trader sells too early, it's hard for them to buy back in the short term because it doesn't align with their strategy. Unless there's a major positive change in fundamentals and the stock price hasn't risen too much (though such a sweet deal is rare).

This is basically like selling a put option—the day trader collects a premium betting that the stock won't rise too much within a certain period, because if it exceeds their premium gains, it means a loss.

Why do day traders like to show off their trades? It's not about bragging.

It's because showcasing their results makes more people believe the stock can't break out, leading more to start day trading. The more people day trade, the greater the resistance for the stock.

But this is a double-edged sword. Success reinforces day traders' belief that the stock price will always come back. Even if the stock goes through a big roller coaster and returns to 20, non-day traders can sell at 40/50—they have that opportunity. But day traders sell at 20, missing out on further gains.

Every strategy has pros and cons.

Those who day traded between 22-18 actually made money because the stock fluctuated in that range for a long time.

But those who day traded between 10-14 have gone silent.