Business & Investment

Stock Market Investment Strategies: Four Lessons The Covid Crisis Tells You About Investing

The recovery from Covid-19 was a journey of panic, patience, gratitude, and a little more panic.

It was a turbulent time to say the least. When I heard the incidents one after another, rather than myself, I overcame the worries of my family and my dear family nearby.

During the 21-day quarantine, I couldn’t even get up and take a walk in a lethargic manner, but my heart was overkill!

Meanwhile, I had to find similarities between Covid’s journey and the world of investment. And I realized that these two couldn’t be any more similar! Let me show you how:

Lesson 1: Don’t panic
The stock market has shocked investors around the world many times, just as Covid has hit our lives in ways never before possible.

And the first reaction is always panic! When Covid attacked us at home, we were everywhere-procured medicines and injections, asked for blood pressure from hospital beds, oxygen cylinders, and roofs!

Did you really need it? Probably not. However, it is simply human nature that assumes the worst.

Isn’t that exactly what we do during a market crash? Kneeling reaction to SELL SELL SELL! How to assume the worst?

Just as the fear of depleting health elicits all sorts of reckless behavior, the fear of depleting wealth makes us act in a way that we must regret.

Sure, the Covid-19 crash halved investor wealth, but the subsequent backlash took it to new heights! Market volatility is inevitable, especially in times of crisis.

The best way to overcome both health and wealth problems is to stay calm.

Lesson 2: Talk to an expert
In a state of great turmoil, the multiple treatment courses mentioned on the internet and the myriad WhatsApp transfers-the only one who came to our rescue was an expert.

The moment my best friend and doctor appeared in the photo, everything became clearer and more organized.

How things go, how often tests are done, continuous monitoring, diagnosis, a step-by-step process of home care – I’m getting better in no time!

Your investment portfolio also needs a doctor. Financial advisors who are experts in capital markets recommend investment trusts or stocks that can increase their assets over time.

Talking to a financial adviser can really help clarify your financial plan. Bagging tools such as budget spreadsheets, financial goal calculators, and detailed market research, those services can really make a difference in your finances.

However, it is important to understand early on that experts can only provide recommendations for improving your health and wealth …

Lesson 3: Discipline is essential
When I got better and the first trauma of the illness began to fade, I was a little laid back. The medicine started to work and I felt rejuvenated by the 10th day.

I started skipping gargling here, where vitamin pills. Until my mother catches my little mistake (God blesses her). After a thorough case-taking session, I promised to follow T’s treatment until the doctor said something else.

And I quickly recovered with little or no sequelae.

I cannot begin to emphasize the importance of discipline in the process of this illness. There is no insignificant remedy. They are all scientifically targeted to specific symptoms, which really helps in a balanced recovery.

So why shouldn’t you maintain the same discipline in your investment? After all, the health of your portfolio depends on it.

When your financial adviser gives you a plan, make sure you stick to it. If you plan to invest monthly, invest without failure, regardless of your recent market activity.

Don’t try to time your entry point to market.
Rambi race basket!! Inject diversified investments into your portfolio to help you survive all market conditions.

Create a balanced and healthy portfolio that can be easily recovered from short-term market shocks.

And in George W. Bush’s words – “Stay on the course.”

Lesson 4: Review
The last day of my quarantine was a moving day. When the clock hit 12, I woke up and pointed my toes at the door of the room that had been trapped for the past 21 days. My heart was excited. The freedom, hope and gratitude I felt was unmatched!

My doctor gave strict instructions on follow-up tests and readjustment of vitamin doses. She also prescribed a balanced diet and light exercise to regain my strength and immunity. I checked with her every few months and promised to let her know immediately if there were any dramatic sequelae.

As new vaccines are introduced to the market, awareness of them and modified WHO guidelines will help in a better fight against this deadly virus.

Regular inspections are also important for your portfolio. It’s not healthy to stick to it on a daily basis, but it’s much more dangerous to leave it altogether and leave it unreviewed.

The world is on the verge of major change and our portfolio needs to continue to adapt. As innovation and technology change our lives, we need to update our portfolio to reflect such lifestyle changes.

Life is really your best teacher. It’s amazing how much learning can be drawn from some of the worst experiences in life.

If you are experiencing something wrong, rest assured that you will come out smarter then.

(Neeti Shah is an Assistant Manager for ETFs and Passive Investment, a DSP Investment Manager. The view is her own)

Stock Market Investment Strategies: Four Lessons The Covid Crisis Tells You About Investing

https://economictimes.indiatimes.com/markets/stocks/news/four-lessons-the-covid-crisis-teaches-you-about-investing/articleshow/83479780.cms Stock Market Investment Strategies: Four Lessons The Covid Crisis Tells You About Investing

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