The coronavirus or COVID-19 spreads rapidly in various parts of the world. In a situation like now, you need to maintain health and cleanliness. Thus, your body’s immunity is always strong and protected from the vicious attacks of COVID-19. In addition to maintaining personal health, do not forget to take care of your financial health. Make sure your financial condition remains healthy, including savings and investment.
Regarding investment, have you invested in stockss? Do you know that this time is the right moment to save stock? How come? Because there are many potential stocks at discount prices due to the coronavirus. Thus, should you invest in stocks when Coronavirus attack?
Well, here is your best opportunity to invest in stocks when Coronavirus attack investment. Why so?
You can buy shares at low prices, and enjoy the results of your investment in the future. However, do not make investments carelessly so as not to lose money. You need to know a safe strategy to invest in shares when the coronavirus spreads. What are they?
Let’s look at stock investment tips you should know:
Apply a Long-Term Investment Mindset
Intend yourself to buy shares for a long-term investment that is more than five years. The longer you determine the investment time, the better the results you will get. You must remember that the benefits of a stock investment will be greater in the long run. Thus, you should create a mindset to become a long-term investor for a better financial future.
The advantage that you get when you invest in the long-term is that you don’t need to worry about the short-term impact of the coronavirus which causes a weak global economy. You will also benefit more because of the corona, the stock price will go down, so it’s cheaper. Precisely here you can buy a lot of shares that have the potential to increase in the future.
Regarding investment, you should not consider it heavy. Let’s just say, you are saving but in the form of shares. How to save shares is also easy and affordable.
In investing, try to consistently save shares. Get used to setting aside an income of 10-15% to buy shares every month.
Buy Strong Fundamental Stocks
As an investor, you cannot buy shares carelessly. There is a strategy you should know because not all cheap stocks are good quality. Make sure you are not tempted to buy shares because the price is cheap.
At present, the recommended strategy when saving shares is to continue to apply the precautionary principle of buying shares. The tips, buy stocks that are undervalued but have good fundamentals. According to Investopedia, some of the fundamentals of stocks include cash flow, return on assets, and conservative gearing. Then, also check whether the shares are included in the sectors of shares that have the potential to rise after COVID-19 subsided.
Be smart and be selective when buying discounted shares. Make sure you choose stocks with strong fundamentals at low prices.
Improve Investment Knowledge and Be Patient
The key to successfully making a profit from stock investment is to apply an appropriate and patient investment strategy. To become a professional investor, you must always improve your knowledge by learning continuously.
Then, you must remember that long-term investing requires patience so that the profits can be maximized. This means you don’t need to panic when selling shares when the market suddenly drops, or rush to sell because the stock price goes up.
You have to know that long-term investors tend not to act rashly. They will wait and see to respond to the stock market which is currently under pressure from the downward trend. They see opportunities when conditions are depressed and remain optimistic. Believe that the coronavirus pandemic will pass, then the stock market will strengthen again and you will get a big profit.
Read more: How to Minimize COVID-19 risk to Your Investments
