Earnings Exposed

With the economy going up and down, there’s no denying that people are skeptical to invest in the stock market. Before I start anywhere else, I’m going to tell you what I firmly believe in. This recession, as much as it is having a hard impact on our wallets, it is also a bit psychological. And it is that psychological aspect that is scaring us into not investing like we used to. And it is because of this exact economy that I stress that people consider investing. First, though…The difference between day trading and investing.

Day trading is, as it sounds, trades that are made throughout the day. For instance, let’s talk about one stock that I own. Yesterday (Friday), the stock opened at $21.80 a share. It closed at $22.01. Now, that’s only a $.21 increase. So, if you only own a few shares, buying it at $21.80 and then selling it at $22.01 would not really be a great profit. But, if you are a huge investor and buy ten thousand shares at a time, you’d have made a profit of $2,100. Still not much…What if you bought fifty thousand? See where I am going with this? Day trading is great if you are going to buy and sell throughout the day.

But, what if you are like me and want to invest. I don’t own enough shares of Intel to merit buying and selling throughout the day, so what do I do? I invest. I make it a long term investment. I’ve actually been holding onto these shares of Intel since I turned 13 (my Grandma bought them for me). Why do I keep them? Because I have faith that the economy is going to rebound and when it does, Intel will be one of the companies I foresee as being a leader in the economy. So, when it goes up to $60 a share, I’ll sell it and make a good profit.

Day trading is a very focus demanding gig, but if you have the money, it can make a nice profit. But, if you are like me and don’t want to focus on the stock market non-stop, I suggest checking out investing. Regardless, though, really consider buying some shares of stock now. The market will rebound someday in the next sixteen to twenty four months…And when it does, those shares that you bought at an inexpensive price will suddenly shoot up. Profit anyone?