By now I’m sure readers of this site are already aware that the stock market and financial markets are in a rough patch. But I think it is also important to highlight just how bad it is. We are in the midst of history here, folks. The crash and volatility in the stock markets right now is one we haven’t seen since the 2008 financial crisis.
As an investor or trader, it can be pretty scary but at the same time, somewhat exciting. This is a story you can tell your kids about.
Just to give everyone a bit of context and background on what’s happening with the markets now: Monday, March 16 was the 3rd time in a week that the US markets were stopped for trading due to them losing too much. This is unprecedented in US markets history.
The last time trading was halted in the markets? The week of 9/11 terrorist attacks, when the New York Stock Exchange and other markets were stopped for a week. That was 2001, nearly 20 years ago.
Indeed, you don’t even have to look too far away to see how much this is affecting the financial markets. That same Monday, our Philippine Stock Exchange (PSE) announced that it would stop trading “indefinitely.” We were the first country in the world to stop our stock market due to the coronavirus. Our stock market eventually opened again on Thursday.
To really drive home the point of market volatility, we go back to the US markets. The Dow Jones Industrial Average (DJIA), consisting of 30 blue-chip companies with consistent and predictable earnings like Microsoft and McDonald’s, had its worst-ever loss on a points basis and lost -12.93%. This was the 2nd worst decline percentage wise in its 100+ year history. The worst was in 1987, 33 years ago.
Other US market indices didn’t fare better too. The S&P500 index dropped off -11.98% and the NASDAQ tumbled -12.32%, its worst decline on record since it was created in 1971.
3 Investors on eToro Who Beat the Bear Market
George Thomson (misterg23)has over 10 years of trading experience and has over 30,000 followers and 2,671 copiers in eToro. He’s worked in either Finance or technology firms in his professional career: Revolut, Deloitte Digital, and IBM. According to his profile, his aim is to generate consistent and sustainable long term profits and applying value investing techniques.
Daniel Collison (OverIt) on the other hand has over 5 years of experience and trades based on market news and trends. He targets 2-3% gains every month for a total compounding gain of 20-30% total. He has 3,031 followers and 413 copiers.
Finally, we have Jay Smith (Jaynemesis). He has been trading with eToro since 2014 and has one of the biggest followers in the site. He has 116,594 followers and over 7,000 copiers. He uses a mix of fundamental, technical, and sentimental techniques and rarely uses leverage.
So key takeaway is: If you are afraid of the markets, don’t be! Despite the volatile markets, there are still opportunities abound, and if you don’t know where to start…just copy!