Serenity: Patience Key in AI Photonics Volatility, Best Investors Are Often Not Frequent Traders

August 10th, Serenity stated that with the recent resurgence of stocks related to optical communication such as Sivers, OE Solutions, LITE, Coherent, AAOI, the market has once again entered a high-volatility phase. Historical research has shown that investors with better long-term performance are often not frequent traders.

Serenity cited research from Fidelity and the University of California, Berkeley, indicating that outstanding investors typically have two main characteristics: one is being a long-term holder, sometimes even "forgetting the account exists"; the other is not engaging in excessive trading. The research shows that low-frequency trading investors have an average return of about 18.5%, higher than the 11.4% of frequent traders.

Serenity mentioned that recently, amidst the volatility in storage, optical communication, and AI-themed assets, many investors in the market exited due to short-term declines triggering stop-loss orders, only to miss opportunities in rapid rebounds.

It believes that investment requires sufficient long-term conviction because a firm investment logic can help investors avoid frequent trading during downturns and maintain a more rational position management and phased deployment during market adjustments.

Serenity reminded that although not investment advice, historical experience has shown that reducing ineffective trades and maintaining patience may be crucial for retail investors to enhance long-term returns.