Constant Rules for Selecting Winning Stocks

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Ways of choosing Individual Stocks

Doctors would advise that to stay healthy, one should eat vegetables and get exercise. But many of us don’t like vegetables or exercise. Therefore, here is an alternative.

Here are three helpful guidelines for selecting a successful stock investment. These helpful guidelines can also be applied to cryptocurrency investments (with a few changes).

  1. Invest in a business that has a significant growth prospect and a significant customer base. For the crypto industry, this is not a problem, as the technology is still in its early stages. If you are investing in a crypto company, you can make use of the Blockchain Investor Scorecard to find an established project that has a lot of users and development activities.
  2. You should never buy a stock at a price higher than its “solid basis of value.” By the statement “solid basis of value,” we mean the worth of the stock. Although it seems obvious that every right-thinking investor would not do such, there are now some high-multiple stocks that have their future growth value built into them. Such is the case with Tesla—too costly. Using the earnings multiple as a helpful benchmark, you can figure out the average growth of stock sales. For crypto investment, you can study measures like Value Per User (VPU) to discover whether the cost you are paying is reasonable or vastly inflated.
  3. Look for investments that seem to have success stories with the feel of a ‘castle in the air’ in them. Such a stock will appeal to prospective investors and general investors. Also, the need for a compelling genesis story of a crypto investment is the first rule in the book of Blockchain Company.

Confident young man working on computer while staying late in the office

For instance, Bitcoin’s genesis story is the best: its unknown creator made a game-changing financial technology before vanishing. When compared to many crypto ventures struggling to make a name in the industry, this genesis story stands out.

Conclusively, these three elements will assist you in choosing a winning investment:

  • The high prospect of growth of the stock or crypto.
  • At a reasonable price.
  • with an interesting genesis story.

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