When Russia invaded Ukraine on Feb. 24 it introduced new volatility to a stock market that was already having a shaky start to the year.
Ukraine is a leading provider in Europe of a number of commodities, including corn, wheat, iron ore and seed oils. When news of the invasion broke, the stock market immediately dipped but has since regained lost ground and is now trading at levels above where it was when the war in Ukraine started.
But as civilians continue to die in the country and vital infrastructure continues to be destroyed, the war is likely to have long-lasting effects on both the stock market as well as the world in general.
When it comes to micro cap stocks, which are often highly volatile to begin with, this new volatility could have a big effect.
Still, pundits say investors should not overreact to the situation and pull their money out of the market.
So what can you do to reduce your trading risk? Here are some investing tips for the coming months …
Investing Tips
- Stay informed.
Never think you know it all when it comes to a particular market or to executing successful trades. You are going to make mistakes. The best traders learn from those mistakes and then use that new knowledge to succeed in the future. - Look for trends.
Successful traders look at the market over time instead of following momentary fluctuations. Base your trading decisions on long-term data, not short-term data. - Don’t Stop Learning.
The more you learn and apply, the better you’ll do. It’s that simple. Never think you have it all figured out. Keep reading, keep watching videos, keep researching. Improving your knowledge is the best way to ensure consistent trading success. - Try to Have Some Fun.
Finally, don’t forget to have fun. You are going to do better at something that you enjoy as opposed to something you hate. So develop a real love of trading and then use that to fuel your success. Put some passion and fun into your trading. Life’s way too short to do it any other way.
Some agriculture micro cap stocks to keep an eye on going forward in this uncertain market environment include:
- AgroFresh Solutions Inc. (NASDAQ: AGFS) – 52 week high $2.59, currently trading at $2.03
- S&W Seed Company (NASDAQ: SANW) – 52 week high $4.60, currently trading at $2.28
- Marrone Bio Innovations Inc. (NASDAQ: MBII) – 52 week high $2.73, currently trading at $0.65
Also, cannabis is a farming adjacent market that is experiencing rapid growth. You can check out the latest news for that market here.
Photo by James Baltz on Unsplash