Investing in occasions of disaster – 6 funding ideas for buyers

Investors can feel secure with wide-ranging diversity, even in times of crisis. If the stock price goes down, so be it Another part of the widely diversified portfolio gains in value and compensate for the losses.

You should never trade with money that you cannot do without in the next few years. The amount in the checking account should always be able to cover unexpected expenses such as car repairs, but it should never be valued, because Early payment leads to losses. It is also not recommended to finance the purchase of shares with loans.

3. Think long term

Investments that generate quick profits have a lot of risk. Investors should refrain from risky speculation, especially in turbulent times, because The risk of losing everythingwhich was evaluated. However, long-term investments in the stock market can be considered low risk.

So should invest Thinking of several years. 15 years and more is an ideal period of time, because temporary losses will run out again – thanks to the previously mentioned diversification. Moreover, thanks to the long term, returns play a real role, making stock market investing the perfect retirement plan for years to come.

ETFs (exchange-traded funds) are especially popular for long-term investments. The ETFs map indices like the one-to-one DAX index. By investing in an entire market, the funds are very broad in scope and therefore particularly transparent and low risk. It also allows investments in more sustainable products or in companies that bear social responsibility.

The investment horizon of more than 15 years means that the risk of losses is zero.

4. Make compound interest work for you

Compound interest increases wealth. Investors have no interest on the invested paid-in capital, but Reinvest every time with capital. This is called accumulation. In the following year, investors will again receive interest on the original principal and the interest received in the previous year. The long term only guarantees that the effect will have a noticeable effect.

5. Save time and effort with digital options

Stocks and Equity Funds It is nowadays traded online through a stock accountOnline warehouses can be opened in a direct bank. In this way, investors save time and money in times of crisis, because online trading is relatively cheap. Professional investors also provide advice and management of online securities accounts.

In the context of online repositories, many also think of trading applications, of which there are many today. Regardless of the time and place Investors can trade in the stock market. However, the meaning and purpose of trading applications is unnecessary when investors are looking for safe investments in times of crisis, because you are safe from losses for only 15 years.

6. Stay away from CFD

Contracts for Difference or Contracts for Difference are basically Risky speculation on the prices of stocks, currencies and commodities. These profit bets are highly speculative and have nothing to do with safe, low-risk investments in times of crisis.

Conclusion

It is quite possible to make profitable and low-risk investments even in turbulent times. One Wide range of asset classes and securitiespaired with long-term It leads to continuous capital growth. Financial freedom – especially in old age – can also be achieved in the capital market in times of Covid-19.

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