6 Tips for Investing in an Increasingly Volatile Market

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It’s 2022, and liquidity has fallen to lows last observed during the COVID-19 selloff in 2020. Low liquidity contributes to a volatile market because it prevents investors from buying and selling their stocks at the desired rate.

There’s no such thing as a guaranteed investment in today’s market. Highs and lows come with the territory, and every seasoned investor knows it. So how do they adapt to an increasingly volatile market?

After applying for a Basic Telegram Weekly Membership at Stock Region University, investors take the following steps. 

Panic Selling is Not the Answer

A major part of being an investor is taking a deep breath whenever you hear about a dip in your stock value and not doing anything about it. You’re a part of a cyclical economy, meaning there will be ups and downs. If your stocks are experiencing a dip now, they’ll eventually come back up. 

Panic selling is not the answer here. Wait and see what happens. For all you know, the market may improve drastically or at least regain half of the value it lost by the end of the fiscal year.

A Hand Hovering Over Two Cards with Labels' Buy' and 'Sell'

Diversify to Mitigate Losses

Every investor’s heard of portfolio diversification. It’s the practice of spreading your investments across various assets to make up for the loss of one investment with the gains of the other investment(s).

When you diversify your portfolio, you become immune to catastrophic losses by letting a rising investment balance out a dipping investment. It’s the perfect example of not putting all your eggs in one basket and a pretty great way to survive market volatility.

Steer Clear of Day Trading

Day trading shouldn’t even be an option in today’s volatile market. Forbes describes it as ‘playing with fire,’ and we can see why. Day trading is buying and selling stocks to profit from minor price fluctuations. While this practice may seem profitable, it can be time-consuming, not to mention extremely risky if you don’t know what you’re doing.

If position trading requires you to sign up for a VIP Discord Monthly Membership, day trading requires you to sign up and constantly monitor the boards. It’s a full-time job and comes with plenty of risks.

For instance, you’re still required to pay taxes on the gains and losses of your activity. Not only that but these short-term investments are also taxed at a higher rate than long-term investments.

A Chart Featuring Stocks During an Ongoing Trading SessionApply Dollar-Cost Averaging

Dollar-cost averaging, or DCA, is an investment strategy taken by many investors because it lets them pay their total investment in regular installments. They can avoid paying more in one go on a volatile asset when it’s on an upswing.

While this strategy is not a surefire way to pay less for an asset, in the long run, it might be something you’d want to consider for high-value stock. Keep an eye on the market by applying for a Premium Telegram Yearly Membership and strike while the iron’s at its hottest.

Don’t Make Drastic Changes to Your Portfolio

Making drastic changes to your portfolio like a day trader is not the way to earn a sizeable profit from your investments. Instead of overhauling everything when liquidity hits new lows, make small changes to your portfolio.

For instance, you could put some of your money in assets rumored to do well in the future. Again, you could follow such investments by applying for a VIP Telegram Lifetime Membership. 

Suppose you’re wary about new investments and don’t want to invest more of your money in an endeavor that’s already experiencing a downturn. In that case, you could try to cut your losses by setting an unofficial selling threshold. This would help you avoid panic selling while cutting losing battles out of your portfolio.

 A Man Watching Stock Market Charts on a Phone and Laptop Computer

Divert Funds to Steadier Assets

Staple foods and utilities are considered steadier assets in the stock market. Their demand is always high, so they’re less likely to underperform. If you must, divert some of your funds to these steadier assets when the times, aka low liquidity, call for it.

While these sectors aren’t completely immune to market volatility, they’re a safer bet than risky investments. If you want to diversify your portfolio, we suggest starting with these assets. 

Ride Out the Downturns with Stock Region University

When the stock market is turbulent, it’s important to stay calm, not resort to panic selling, but stay on your guard. Sign up for a Discord or Telegram membership at Stock Region University to keep tabs on your markets, receive alerts about your stocks, and learn the ropes of investment through education courses.

Get in touch with a customer representative for queries and concerns. 

About the Author

Regina Alvarez is a wealth management expert affiliated with Stock Region University. She specializes in conventional stocks but has started taking an interest in cryptocurrency investments.

Her hobbies include watching stock market quirks across the world, hiking local trails, and scarfing down a tub of Ben & Jerry’s while diligently hiding it from the judgmental eyes of her eight-year-old daughter.

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