Should You Invest in Stocks During a Pandemic?

When it comes to the world of investing, three words that come to mind: overwhelming, intimidating, and scary.

Throughout my deployment, I have been constantly looking at ways to increase my cash flow. Some of the methods I have looked into include sports betting, lending money, and real estate.

One of the big ways I thought about making money has always been in the Stockmarket.

First experience

In the summer of 2017, I never really took the time needed to learn all about stocks and how they work, but I knew that I wanted to invest. I gave the stock market a grand ended up losing $400 because I got out too early and didn’t play the long game. I left. My mistake there is that I wanted instant gratification and as a brand new investor, that is not easy to do. Now. Ever since then, I have gained a more long-term perspective. I have no intentions touching the money that I put in (roughly $5,000).

“There is a risk in everything, so be prepared for the ups and downs”.

2020

Ever since the Corona Virus pandemic broke out in December 2019, the stock market has had a downward slope. The majority of people see the numbers and run. Many lost money as well. At first, I saw all these dropping stocks as something to stay away from, but that changed when I saw it as an opportunity. My friends who were into stocks were still playing the game and I felt like I might be missing out on something huge.

Red means the stocks are losing value. There’s a lot more red than green!

I placed myself into roughly 5 stocks at competitive positions. For example, stock A was $130 months before the market dwindled, but I purchased it for $30 a share. If it bounces back, I’ll take a profit. If it drops, I will continue to buy more using the dollar cost average. This method ensures that as long as you keep buying, your general position on any given stock will be lower. Once that stock rebounds, the market price will most likely have increased. During this dip in the market, it almost feels like Black Friday shopping for stocks!

If I told you that I wasn’t worried about the market, I would be lying to you. However, after reading articles and watching YouTube videos, I have found a peace of mind in investing during a time like this. Over the course of history, the stock market has either recovered back to normal or done even better the years following. As a young gentleman like myself, investing now and holding them for a long time can produce very nice returns for me down the line.

Currently, I see the stock market as an opportunity I do not want to miss out on.

As support, the Facebook page “Robinhood Stock Traders” has provided me confidence in my stock trading. My good friend Allen Tran happens to be the owner of this group that has more than 150,000 members. He has given me wonderful advice throughout the whole journey.

“In investing, what is comfortable is rarely profitable” — Robert Amott.

After two weeks of investing, I am very proud of myself for taking a chance on an opportunity that could really help me in the future. When the majority says “no”, say yes!

Final thoughts

If I lose my money, so be it. Lessons will be learned with any outcome. I am happy that this opportunity came on my deployment and gives me something to look forward to.

Warren Buffett, one of the top investors of this generation says

“I will tell you how to become rich. Close the doors. Be fearful when others are greedy. Be greedy when others are fearful.”

Be prepared to invest in a down market “(currently) and “get out” in a soaring market.

To all other investors reading this, best of luck! To anyone curious, check out YouTube videos and read a little on stocks! It’s a fun little game!