I Implemented These Strategies to master Stock Searching
I have been using these strategies for the last 18 months, You should too
Nowadays, investors are seeking modern assets to diversify their portfolios. The asset class is vast and diverse.
Although I’m a firm believer in Crypto, Bitcoin and the concept of Decentralised Finance
It’s concerning to see both young and traditional investors forgetting the potential of stocks.
Let’s not lose sight of the benefits and opportunities they can provide.
Remember the saying, Old is Gold
Stocks for a long time have been the asset classes that produced many millionaires and billionaires and would surely produce Trillionaires in the future
How the Fed Affects the Stock Market
Its Return and Presence are unmatchable, I mean It surely does have a Class Unlike some Random meme coin giving 10,000% return in One month
One of the important tenets of the stock market is to select the best stocks from the best Sectors
In recent times, investors have been leveraging the power of search engines to find information about potential stocks and sectors to invest in.
With just a simple search query like "Best Stocks to Invest in 2024" on Google, one can access a plethora of articles that offer insights on the subject matter.
This approach has made it easier for investors to make informed decisions based on the available information.
But Do u think it would be good to follow those random articles’ advice and load up 283 random stocks in your portfolio? Not
Well, the better and Harder option would be to research on your own! Simple as that
One Time, An Old man said “If you do not know what route to follow, Always Choose the Braver and Harder one”
And here it comes, The harder and CORRECT option- {To research About Stocks} Tada
Here is my go-to list that I have been following for the last 1.5 years and honestly it’s made me a Good researcher in the Market
What’s Your GOAL?
I mean You may have many goals But I meant for your Investment Goal.
Relocate and think about your risk-taking ability and your Capital
What if markets shed 20% from their 52-week high? Can You Bear a 12% Loss in a Year??
If your answer is NO, Lower your expectations from the Stock Market and there’s no problem in doing that.
Matter of fact, You’ll be more focused on your goals and it will be absolutely easy for you to survive and win in the Markets!
If Your Answer is Yes, Congrats You’re a Proper Investor or You’re probably an Expert with 3+ Years of Experience.
Once You Locate Your Goals, the Next step Would be to
Do a Quick Industry Scan
This Tenet would not only help you in identifying your perfect stock but would make you understand the basics of that particular Industry You’re researching, How Great!
Pick Out the Obvious Industry that u feel can sustain over 5–10+ Years, The one you see about in the news nowadays
Don’t forget to see the Industry Cycles such as their Profit margins, Industry’s operational incomes
Bonus Tip- Check your favourite Industry’s Performance in Adverse Market situations such as Bearish Market
As it would help you to predict future performance. Do their Profit margins get small during a particular season?
If yes Why? You Gotta be a Magical Thinker! Cmm’on You can do it
This step would seem fun to anyone curious about Markets, After this Fun-To-Do Step, You Gotta do
Analysis of your CHOSEN ONE
After You Identify your Favorite Industry
Let us imagine you picked the Banking Industry {Not an Interesting Industry OOPS!}
Then You gotta see around You! Which Bank Do You Have in your locality? Does it have a Great long queue in the Morning?
If yes, It conveys Many people are using that bank! {More People=More Revenue=Surge in Stock Prices}
There You Go! You picked up the favourite stock of your chosen Industry
In this step, You will be learning about your brain Capabilities! The more you use your brain, The Phenomenal Idea for your chosen Stock
Bonus Tip- Just see Things around you as They are, And You’ll find Great Companies around you.
Just Activate Your brain in thinking some Complex questions and Your brain will serve with the suitable answers
After the stock You chose, You Gotta Follow this next Analytical Step. The step is to
Focus on your Favy Company’s Balance sheets
It may sound Boring if you aint from a commerce background just like me but indeed it is an important step to follow
Now In this step, Just SEE and EVALUATE profit and Losses, And terms like P/E, Balance sheets, Cash Flow
These Terms would do the task of making you confident about your company
Things like Growing profits and Strong Asset Management would give you a strong grasp of your company’s performance
After this step, You always wanna know about your enemy AKA your rivals in any competition
Same with your Chosen Company, Follow the step of
Analysing Your Rival Companies
It’s Alright, You chose your favourite Industry, Then your Favourite Stock but Wait WHAT IF
One more bank in your locality has a longer queue than the one you chose! And Your previous step goes to Trash! (Doesn’t Feel Good, I have been there)
To avoid it Going to Trash, Analyse Your Rival Companies
See Things like proprietary Technology, Strong brand recognition, or a dominant market position.
Assessing competitive positioning is crucial for long-term sustainability and profitability.
Repeat the Previous Step on your Rival companies (The Top 2’s enough) and compare it with the stock You picked.
After this step, Once you have figured it out, You go to the step of seeing
The Growth Potential
The reason I added ‘The’ before Growth Potential was to showcase to you how Important and Reputable this Step is!
Seek development, and development right into brands, coupled with calculated collaborations that suggest future development possibilities.
In Other words, See the past growth of your chosen industry, But wait wasn’t that already done while scanning your Chosen industry? NOPE
In Industry Scan, We saw Flaws and Advantages but in this Step, we are going to see The future perspective of Your Stock and Its Industry
In This Step, You managed to see the potential Return that your stock may bring to you within the next 10 years!
Just one more step which is to
Stay Informed and Open Yourself To New Areas
Remain educated by consistently keeping track of firm information revenues records plus more comprehensive market fads
Be prepared to adjust your financial investment thesis based on brand-new details plus transforming market problems
Always Be Open to Info and DONT BE RIGID in Markets
Straight Conclusion Under 100 Words
In verdict, an effective supply research study needs a mix of economic expertise, and sector competence, along with a regimented method of decision-making.
By complying with these actions as well as continually improving your research study procedure
You can Boost your Capacity to Recognize quality supplies and also construct an effective financial investment profile in time.
Being Persistent and Determined will help you as It’ll up Your Investing Game
I would Like to Conclude my article with a quote from A legendary Investor- Peter Lynch and it acts as a Bonus especially in Getting the right Stock
“Invest in what you know.”
I hope this article will help you with The art of Researching, See you soon!
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Note: This short article is an imaginative analysis as well as needs to not be taken as Stock suggestions. Constantly talk to a Stock Market Advisor for financial investment choices as I’m a Person with 4 years of experience guiding you
