How to actively participate in the stock market during turbulent times

participate in the stock market

stock market

A hectic and volatile stock market is hard to understand in some cases. While the stock market and 2020-2021 could be considered turbulent, it has been an upwards slope for most of the time. This raises questions to many investors: should I continue with investing in the market? In this article, we will discuss the investment strategies that apply to long-term investment as well as an overvalued stock market. Next, we will also discuss how you can leverage a stock tracker app to stay up to date with minimal emotional involvement or to participate in the stock market.

Long-term means continued investing

An effective investment strategy is often long-term, with horizons between 15 and 30 years. When observing how the stock market moves during longer periods, we typically see one trend: up. This means that although it might be found counterintuitive, the market on average always grows. This also makes sense when taking into account inflation and technological progress when deciding to invest as a Largest defense contractor.

Investing lump sum or using Dollar Cost Averaging (DCA)

In a market that is overvalued, investors are worried to invest at such a high price point. Instead of investing all their funds at once (i.e., lump sum), they rather spread it over time. Spreading a larger amount over time feels more comfortable and spreads the risk. However, according to studies it has been proven to be better to invest a lump sum. This introduced the motto: time in the market beats timing the market. That being said, it is recommended to invest your funds at once if you have a long time horizon.

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Diversify and increase your exposure across industries

With a long-term strategy it does not come down to a single industry: you need to spread to ensure continuous growth. The use of Exchange Traded Funds (ETFs) can help you to gain exposure to many stocks. These funds often mimic indexes and allow you to capture a broad part of the market through a single fund. The funds are also updated regularly to reflect the market (e.g., the S&P500 is continuously updated based on the market caps of organizations listed in the US). S&P 500 ETF XLF’s major holdings include Bank of America, JP Morgan, and Berkshire Hathaway have healthy balance sheets and are considered to be profitable investments. These companies pay XLF dividends which can help investors grow their income

How can a stock tracker support you- participate in the stock market

A stock tracker app allows you to have a full overview of your portfolio. Combined with the latest market news and analysis, you can be on top of your game. However, as you want to invest long-term, the goal is not to look at your investments every day. A stock tracker can help you, as you can set up notifications at certain major price changes. This prevents you from looking daily and making irrational and emotional decisions.

Example of a stock tracker

A good example of a stock tracker app is Delta. This leader in the field offers integration with a broad range of brokers through API as well as the option to integrate cryptocurrency wallets through their Public Key. This enables a holistic view of your portfolios with insights in market news, stock analysis as well as an overview of transaction fees per stock to provide you with the best deal. More information is available through their website: