Long-term investors and short-term traders many times have very opposing views on how capital should be allocated in their portfolios. Whereas the long-term investor is all about adding as much capital to the account as possible (through own funds or dividend re-investment) in order to get compounding going in high gear, many short-term traders actually look to withdraw capital (trading profits) on a monthly or quarterly basis.
Neither is right or wrong. Both mindsets definitely have their place in the trading and investing universe. The advantage of the long-term strategy is definitely the compounding which