*Article contributed by Amin.
With the pandemic approaching its tenth month, its effect on the global economy is staggering. Many are unable to pay for rent or mortgages, or just day to day expenses. The threat of Covid-19 is real, as the numbers rise across the nation. Despite the precarious market, there are measures investors can make that will better protect them when the pandemic ends.
Financial entrepreneur and investor Gary Ng offers five sound tips.
1. Capitalize on Low Interest Rates
As Gary Ng mentions, interest rates are close to 0%, so it is not a good time to save. What is important is to make your money work for you by using your capital in a productive fashion. The pandemic is actually a good time to reevaluate your financial situation. Really examine where you are now and look at the big picture when the pandemic ends. Study the trends by taking advantage of the market tools offered by brokers. Set goals according to your own situation and have clear expectations. Make the stock market work for you.
2. Get Expert Advice And Learn
Novice investors with capital should open a trading account, but only do so after hiring a reputable financial firm that can coach you through the investing process. Study the advice they give and research why they gave you that advice. Learn from them, and do not just take their advice. Begin with basic trading and let them guide you to the next level when you feel ready. When you get knowledge on buying and selling stocks, proceed to options, ETFs, bonds, and futures. Take everything your advisor tells you and learn more than what they have told you. It will have enormous benefits down the road.
3. Avoid Following The Herd
Gary Ng insists If you are a novice, research! Don’t buy stocks that you don’t know, even if someone gives you “secret” advice. Don’t follow the herd just because everyone else is. Look carefully at companies you use and understand. For beginners, it is important to invest in what you know. Any other way is a risky crap shoot.
4. Progress Slowly To More Advanced Trading
It is vital that you take your time moving to more advanced trading. It is common to see novice traders move too quickly and make huge mistakes as a result. Again, research, learn, and absorb everything. Watch the market and research why a stock doubled or lost. You must get accustomed to the volatility of investing, and when you are comfortable, it is time to go to the next level of more complex trades. In realty, the stock market is all about knowledge. Get it.
5. Evaluate Spending
One of the most important things you can examine, especially now, are your spending habits. Where does your money go? Keeping a financial journal is recommended. Save to invest your capital. While it is always important to save, really examining your situation now puts you in a more idyllic financial place when the pandemic is over.
*Article contributed by Amin.
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