Look, traders for the big banks eventually lose their money and get kicked to the curb. But, individual investors think they can do better. Please...
Just looking at fund flows for mutual funds, many people sold in December and came back as the new year unfolded. So, they locked in losses in December, then they bought back in after the rally was in full swing. Even if they had gains in December, Uncle Sam took a nice chunk. Their cost bases for the new purchases are higher. So now there is little downside protection meaning there is little room for error. When the next spike down occurs, they'll do the same. After a couple of these cycles like this, they will have locked in big losses.
Invest long-term by owning quality companies for 3 to 5 years plus. Trading stocks sounds great and might be entertaining, but so is going to the horse track. The returns on the horse track are much the same - fun but no profits.
