A Theoretical Investing Scenario

The concept of investing is one that most people can agree is a good bet. Put some money aside in a solid company, never look at it for 40 years, then hopefully take it out with 1,000% in capital gains. The idea of this gets me excited, but I feel that people don’t really think about the absurd amount of money they could really make from such a small initial investment.

Let’s say during the March crash you timed the bottom perfectly for Tesla, when Tesla dropped to $361.22 on March 18th. You figure that Elon Musk can turn it around from the pandemic hit, so you decide to buy a share. Now on August 27th, 5 months later, it is valued at $2,238.75. This is a whopping $1,877.53 profit! Once Monday rolls around, Tesla is going to split 5 for 1, meaning that the share price will be 1/5 of what it closes at tomorrow, so it will most likely be worth around $450, barring it rises again tomorrow. Now when Tesla rises, you will receive 5x the money in capital gains. If it reaches $2,000 again, your position will be worth $10,000! At The Common Trader, this is exactly what we want people to realize they can do with their money, with minimal research.

-Darnel Shillingford

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