In this blog post, It will be covering the 10 Investing Rules During Covid-19. These are just things that you need to think about when investing in this current market situation. I hope that you are reading my post or other financial blogs because getting knowledgeable in personal finance is something you won’t regret. If you liked this post then make sure to send it someone else that can benefit from the reading.
The original person that came up with the rules was by a redditor named bankeronwheels. Below is his 10 rules for investing during this bear market and to avoid reading if you are a short term speculator.
1) Buy as the market goes down
Instead of waiting for the stock market to hit the complete bottom, it is best to slowly invest your money. This basically means that you will have money at different low points and when it goes up you will still be able to get good returns.
You need to be able to space your money out because it is a safe way when investing. Morale of the story, don’t throw all your eggs in one basket.
I mention this same strategy in my last post here.
2) Avoid FOMO
This step ties together with #1. You hear stories about day traders making thousands of dollars off puts and call options during this market. Or even have that sense of feeling that you need to throw your money in before you miss out on becoming rich overnight. Avoid all of that and don’t fall for FOMO!
During this time, everyone has to worry about budgeting and paying all their bills while not going to work (for some). For investing during this bear market, you need to be rational and slowly invest your money. You need to know that putting your money in the stock market is going to be for the long term.
3) Don’t Time The Market
You are always going to have YouTubers, Bloggers, and whoever else tell you that trying to predict the stock market is impossible. If you every thought that stock brokers and financial investing geniuses could make you lots of money then you need to hear this… They can’t time the market..
No one can. You are basically giving your money to another human being to then invest what he/she thinks is best based on what you want. No secret sauce, just merely guessing what will happen if the money is put into A and B (Yes you can do it yourself).
4) Diversify your investments
This is another thing that you will always read in my post until it gets stuck in your head. When investing your money into the stock market, make sure that it is spread out. That means buying ETF’s, stocks, dividend stocks, bonds (if you want to be super safe, which also means don’t put to much into it because the returns are low). Even make sure that you are investing in different industries.
5) Read the rest down below
I’m not going to talk about the last steps because I feel that you should read this persons full thoughts on this topic of investing. Plus, with everything that is going on it’s best to share traffic and let the readers see two perspectives on this topic.
I want to thank all of you that have been reading The Finance Starter and supporting me. All the blog post that I write is something that I find interesting and feel that someone else would want to learn about the topics of personal finance and investing.
Stay safe out there, wash your hands, practice social distancing, and budget your money.
Below will be a list of previous blog post from me: