The Covid-19 pandemic has shocked the entire world. Many people lost their loved ones. Others lost their jobs and businesses.
Many of us are still struggling with anxiety, but we are not losing hope that the world will be back to its healthy normal state one day.
The stock market also suffered a colossal drop because of the pandemic. Some companies soon recovered, and then some even hit their all-time high.
Some businesses have yet to recover, especially those from the travel niche. Although travel is resuming little by little, the travel industry is not yet earning its full profit like before.
Why I bought Airline Stocks During the Pandemic?
My investing strategy is more of a long-term focus, but I make minimal short-term trades whenever there are opportunities or whenever the stocks I monitor reached their BUY levels.
I monitor 30 to 40 stocks every trading day, and I set the buy levels according to the trends, momentum, and simple moving average.
The stock market crash in March 2020 has caused both crises and opportunities. Traders would short many stock indices like the S&P 500 and the NASDAQ 100. I remember many would wait for the bottom, but prices would continue to fall like there was no bottom.
Time in the market is always better than timing the market, so I bought some shares of my favorite blue-chip companies I’m investing for long term.
I also took the favorable chance to buy a few shares of some airline stocks like Airbus, Lufthansa, and EasyJet. These European stocks I like to watch even though I live in the Philippines.
I bought airline stocks during the pandemic because I was confident the crash would be temporary. As an entrepreneur, I always believe in the saying “every cloud has a silver lining.”
Besides, Airbus, Lufthansa, and EasyJet are all very important companies in France, Germany, and the UK.
A few months later, I closed my profit in Airbus and Lufthansa. Now, I’m still holding my EasyJet shares with 119% gains already.
Should I Close My Profit Now?
What’s my plan now? I’m comfortable holding my EasyJet shares until this time. My trade position has no leverage applied. Besides, I invested only 0.73% of my capital with it.
Now that many countries are getting the vaccine, travel will eventually open worldwide. That could bring back more revenue to airline companies. Likewise, that could add more investors and drive the stock to go up again.
Of course, nobody knows what will happen. If ever the market suffered another huge drop like that March 2020 level, I would take that as another opportunity that doesn’t happen quite often.
Risks of Trading Airline Stocks
While I like trading airline stocks and their profit potential, it still carries enormous risk. Also, airline stocks fluctuate quickly on any trading day.
An inexperienced trader could lose money if he doesn’t have a practical strategy. Always be careful. More importantly, trade with caution. Always expect the unexpected.
Disclaimer: The author is a small investor of EasyJet. She wrote this article herself, and it expresses her own opinion and investing style. This article is for information purposes only and should not be considered as professional advice or endorsement of a particular stock. All investments have risks. Risk only the money you’re not afraid to lose. Have enough knowledge and always do your own research before investing.