The stock market always was and always will be volatile. Especially now, during the Covid-19 crisis, it has been more unstable than ever. However, you should know that it is totally possible to make money in the stock market even during a recession. 

What mostly separates the unprofitable and profitable investor is having a diversified portfolio, and knowing when to sell and when to buy new stocks. The following tips will make you more likely to achieve financial success in your life:

Boost Your Savings and Have An Emergency Fund

If you want to start investing in variable income, you should keep in mind that it can carry some risk due to volatility. So, you must have a portion of your money allocated in a safer investment. The most convenient choice, and with the highest liquidity, is allocating your money to a high-yield savings account. There you can earn up to 1% APY, depending on the bank or financial institute you choose. You can also opt for other investments such as saving bonds, certificates of deposit, money market funds, corporate bonds, treasury bills, notes, bonds, and TIPS.

Study About The Investments You Want to Make

A considerable number of people think of investments such as the stock market as a get-rich scheme. This mindset will likely make them make bad decisions, get frustrated, and potentially lose a lot of money. However, it’s entirely possible to earn money investing (even during an economic depression), but you will need to study how to do it and also how to diversify your investments. First, and most importantly, you must know your investor profile. Are you willing to take risks? Certain stocks can make you earn a lot of money, but they are also riskier. On the other end of the spectrum, other investments, such as certificates of deposits, Roth IRAs, and saving accounts will make you profit less money, but your funds will be safer.

Invest In Big Companies For Only 1 Dollar

Did you know that anyone can start investing in the stock market without having thousands, or millions of dollars? In fact, you can buy stocks for as little as one dollar. That is possible, because some platforms let you buy fractions of a share. There are many benefits to purchasing fractional shares. For example, they also pay dividends (if the paper you purchased is a dividend-paying stock). It’s also great for people who are getting to know the stock market so that they get their feet in the water and also diversify their stock purchases. You’ll also be able to buy stock from big companies such as Apple that you might otherwise not have been able to.

Consider Investing in Blue Chip Stocks

If you have a more conservative profile and still want to buy stocks, you might want to consider investing a larger portion of your portfolio in blue-chip stocks. These papers are considered safer than buying other types of stocks, because they are reliable companies that usually pay uninterrupted dividends to investors. They are also one of the most favored investments of billionaires like Warren Buffet. Some examples include Visa, Johnson & Johnson, Boeing, and the Coca Cola Company.  

Get Life Insurance For Your Family

Do you constantly think about who’s going to take care of and provide for your family after you’re gone? By buying life insurance you’ll guarantee your husband or wife’s and your kid’s financial future so that they have a place to live comfortably or go to college, in case something happens to you. So if that’s something you’re interested in, there are many options you can consider, starting from as little as $8 per month.

Open a New Brokerage Account and Take Advantage of Bonuses

If you don’t have one yet, you will likely need an account in a brokerage in order to start investing in the stock market. Brokerages want to earn for your business, so they offer pretty good bonuses so that you open an account with them. Robinhood, for example, will give new clients one free share of stock (that can be anywhere from $2.50 to $200) if their application is approved. eToro, on the other hand, has a $50 bonus after making a $50 deposit. Don’t forget, however, to check and compare their fees and benefits to find the one that fits your needs.