5 Investment & Trading Lessons you Should Learn from Covid-19 | Motilal Oswal

5 Investment & Trading Lessons you Should Learn from Covid-19

The Covid-19 crisis has had an impact on not just our physical and mental health, but it has gone on to impact the global economy. Investing during the pandemic has therefore been an eye-opening experience. Read on to understand a few trading and investment lessons that have been practically showcased over the past year and a half. Open a Demat account online if you haven’t already after understanding the lessons listed below.

Investment and Trading Lessons Learnable from Covid-19

  • Viable blue-chip investments can crumble – While blue chips are known to encourage trust and are reputed for their reliability, they too can experience a downfall when faced with major hurdles such as the pandemic which brought with it issues in the form of lockdowns. Each lockdown hindered previously existing consumption patterns which in turn consequently led to an increase in the number of defaulted loans.


  • Adaptability is key – Companies that have adaptable business models in place are the ones destined to successfully walk through fire unscathed. While these companies might also be affected by hurdles in place, they are more likely to survive unwanted situations owing to their flexibility. They are therefore the sort of stocks to buy during a pandemic.


  • All crises bring with them investment opportunities – It is important to recognize that all situations including crises are capable of being spun into moneymaking opportunities in stocks. Take for instance pharmaceutical stocks that have drastically risen in value ever since Covid-19.


  • Hope doesn’t make the world of investments go round – Investors must not be swayed by emotions and hope. Instead, they should have a clear understanding of the market, how it operates and keep an eye out for factors likely to affect it. Hope does not find space in the world of investments and trades. Instead, making suitable arrangements to deal with trading risk and manage them prevails.


  • Diverse portfolios are reliable – Investors and traders alike must always abide by the adage that dictates not hedging all their bets in one place. By diversifying investments across different industries, investors and traders are spared the consequences of losing all their seed money. This is because different industries react to the same news and global events differently.


Conclusion -

Online Demat accounts allow for individuals to trade with ease. Investors and traders must always have a clear understanding of their financial goals and how they plan to allocate their assets to prevent the least amount of damage during crises like Covid-19 which highlighted flaws in investment strategies.


Related Articles: How to Open a Demat Account Without a Broker | Factors to Keep in Mind While Opening a Demat account | Factors to Consider When Opening a Demat Account | 10 Points to Remember When Operating your Demat Account | Types Of Demat Account & Trading Account


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