Many small trades or few big investment?

Some people think that short term trading are simply gambling.
Investment is different where you have done your study, you buy a stock and can leave it as it grows over the years.

Think again.

If done correctly, hundreds of small trades can be a more stable investment and at the same time less prone to huge market events. The longer you holds on to your stocks, the more likely it is to meet one unprecedented event that will bankrupt this company you have been holding for 10 years.

On the other hand, if you are doing hundreds of small trades backed with good strategy, mathematical sense and discipline, yes you are essentially gambling. But now you are the casino; you lose often, you win more often. With compounding, a seemingly mediocre edge will lead to big numbers.

Let's say you have a 60% win rate and 1:1 reward ratio, with Kelly Criterion to optimize your bet size, you are expecting to 55 fold your capital in 200 repetition.

Let that sink in for a bit.
Magic? no, it's simply math.

Below is a simulated chart based on 60% win rate and 1:1 reward ratio, starting with 1000 capital. Blue line is the estimated value, red line is simulated with random numbers.

The way i see it; few big and long term "investment" seems more like gambling, and hundreds of trades is actually one investment.