Why Short-term Can Actually Make You Broke?

in #investing7 years ago

Trading Vs. Investing?

When you consider stocks for the very first time, you may have dollar signs in your eyes. These are often linked to people who have a stroke of luck, and are likely to imply that one is going to strike it rich. This is thinking at its most basic. One must look at what to do with stocks, and this may include investing or trading.

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“Long term investors don’t care about the short-term ups and downs” — izi
Trading Vs. Investing

On one hand, trading in stocks means that you are consistently buying and selling stocks to take advantage of differences in price as returns. Here, you will need to purchase at a price that is low and then sell at a price that is high. On the other hand, with investing, you take more time to build up your wealth as you buy the stock and then hold on to it. Rather than selling it quickly, you fatten your wallet by accumulating annual dividends. Over time, your shares could gain in value incredibly, and then you can choose to sell them for a potential massive return.

The Magic of Day Trading?
If you’ve done your research, you may have come across what stands out as a magical term — day trading. Basically, it means that you may accumulate massive profits by trading in smaller amounts on a daily basis. The aim of this is that you can make a profit and accumulate it over time, though the changes in price would be really tiny.

However, you could lose massively as there are incredible risks that come into play. You see, trading is not just money in and profits out. With day trading, changes could happen at any time, even a few seconds, and if you are not paying attention, you could be on the losing end. Then, there are expenses that can make your profits almost non-existent such as commissions for brokers or taxes.

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Short-term Can Actually Make You Broke!
If you really want to make money, then you need to consider long term investing. When you do so, you are agreeing that there are some things that work for you — lower taxes, lower commissions and the chance to make the most of volatile stocks. In the period of a year, you would have been able to determine patterns and make more informed decisions regarding investing or trading.

Short term investing is riskier, and it is risk that may not pay off. Seek your profits the best way possible, even though you may need to be a tad patient while you do.

When getting started, you maybe need a bit of help. This help may come in the form of a personal investing assistant who is able to help you save time so that you can better manage your stocks. Check out izi so that you can save time, avoid stress and become a smarter investor!

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izi Personal Stock Investing Assistant

I’m izi your personal stock investing assistant!
I’m here to help you save time in the stock market! I search, analyse and monitor stocks that match your interest and mindset.

Save time: I examine & analyse stock markets for you. Finding and analyzing opportunities is painful and time-consuming. Through personalised algorithms, I do the job for you! I filter more than 95% of the stock market and help you find what matters most to you.

No more stress: I monitor your favourite stocks and keep you updated. Not knowing what is going on with your stocks can be stressful — together, we create your personal investing framework and I help you to stay on track.

Get knowledge: Easily become a smarter investor. An investment in knowledge pays the best interest. Sure, but it requires commitment and time. I assist you at your own pace with what you need to know, in order to succeed in the Wall Street jungle.!!

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