The COVID-19 pandemic has had a huge impact on the stock market, with companies failing due to shutdowns and stock prices plummeting. David Kang, who writes under the name Mister Investor, founded his company Prosperity Trades, where he teaches aspiring investors how to navigate the market. Here are his five tips to make wise investments during this volatile period.
Consider the tech industry.
Many industries like restaurants and movie theaters have had to shut down during the pandemic due to their physical presence. However, companies that exist online are thriving. “The stock for tech companies like Zoom or Netflix are soaring right now,” he said. “Some might be overvalued, but don’t forget to incorporate these stocks into your portfolio.”
Look for red flags.
Many investors see that a stock is at a low price and think they can make money as the market adjusts. However, some businesses might be too far gone, meaning they’ll never bounce back after COVID-19. “Look to see how the company is doing during the pandemic,” David Kang said. “Check its revenue. Unless I specifically recommend a stock that’s struggling, it’s best to avoid it.”
Buy when the market is low.
The value of stocks went way down at the end of the pandemic, but are currently much higher after the election. It’s possible that the market will adjust and prices will go down again. “Try to use your money to buy stocks when prices are low, especially when you’re day trading. This will give you the best returns.”
Try day trading.
One of David Kang’s specialties is day trading. He teaches aspiring investors how to make money this way through his courses for Prosperity Trading. “This is a great way to make money quickly,” he said. “I send out alerts as to what to trade, and I do weekly live advice sessions. This will help you learn where to start.”
Join a stock trading community.
If you don’t know anyone else who’s actively investing, it can be scary to do it alone. That’s why David Kang created Prosperity Trading, which acts as a community where users can share their tips and learn how to invest together. “Your confidence will go through the roof when you have other people on your same path.”