As we all know, the outbreak of the CoronaVirus had caused economies to fluctuate. This caused a downturn of stock markets globally. As of the latest news, the WHO had declared the virus outbreak as a global emergency and possibly be escalated to a pandemic.
While we really don't have any control of how the virus is affecting our investments. We can however, mitigate at least some aspects of it. How do we do it?
If you have your own investment techniques to share, don't forget to leave your perspective below. Let us help other weather out the storm.
- Your Life In Perspective by Ælfræd (Elf Counsel)
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| "stock-exchange-world-economy-bull" by geralt is licensed under CC0 |
While we really don't have any control of how the virus is affecting our investments. We can however, mitigate at least some aspects of it. How do we do it?
6 Smart Investing Techniques During Stock Market Recession
- Know your losses threshold - To easily get around the stock market scene, is to enter with the assumption that you will sooner or later lose money. This is not to say that you need to be pessimistic, but you need to know both sides. Be aware that Gains and Losses are sides of the same coin.
- Revisit your Investment Capital - Chances are you have some buying power lying around in your account. I suggest you review this and decide if you will deploy the money or not.
- Buy, Sell, or Hold - If your stock position is affected by the downturn. You can do the following: Buy - to average down the price so that when the stock bounces you are closer to the bottom price and can fully benefit its upside. Sell - This is a hard thing to do, especially if you are selling at a loss. However, this is the most important discipline to learn. You need to sometimes part with your money to open new opportunities. Don't be a captain of a ship that intends to go down with it. Hold - If you trust the stock that it can weather out the effects of the downturn, then you can just hold until it bounces. And from there, you can buy again as it goes up to take advantage of the momentum.
- Research the stock's industry - We are in an era that information is easily accessible. This virus situation, is somewhat a repeat of what happened way back, meaning, this is not the first time the stock market experienced a recession. Based on that, you can gather data about the stocks that were mostly and least affected and draw your investment decisions from there.
- Be aware of the news - Any news released by reputable sources can affect the stock market. Make sure that you are not kept in the dark.
- Plan, Test, Evaluate, and Repeat - Building wealth will involve a lot of hard work; make sure that you do your assignment especially on the research part.
If you have your own investment techniques to share, don't forget to leave your perspective below. Let us help other weather out the storm.
"Getting an audience is hard. Sustaining an audience is hard. It demands a consistency of thought, of purpose, and of action over a long period of time."
Bruce Springsteen
- Your Life In Perspective by Ælfræd (Elf Counsel)
