Wednesday, 08 June 2022 09:06

What companies are worth investing in?

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Alexey Kirienko EXANTE. Alexey Kirienko EXANTE. pixabay

Brokers often say that investing on the stock exchange pays off almost always. As we know, this isn’t always true.

 

There are many companies that turn out to be unicorns, whereas some companies are not promising from the very beginning. You should therefore choose what to invest in very wisely, because funds put into the stock exchange can easily evaporate if you choose the wrong company.

Knowledge and analysis - strategic and tactical approaches to stock market investing

It is common knowledge in marketing that emotions are what sells. That is why many people make impulse purchases - if they took more time to consider, they would certainly not make such a decision. This is also very often seen on the stock market, where investors are guided during their decisions primarily by emotions. On the one hand, it is a natural process that can be scientifically explained, but in the case of stock exchange investments it is definitely a wrong step. Why? Because investing on the stock exchange mainly involves knowledge, analytics and predictions. Emotions, as we know, very often can lead to nowhere.

A company worth investing in - which one?

If you are looking for a company in which it is worth investing your capital, you should first of all thoroughly analyze its history on the stock exchange, its quarterly reports and achieved results. An important factor is also its profile of activity, as particular industries are characterized by very specific market behavior. Today a definite favorite is obviously the tech and IT industry, as we use its products and services every day. This does not mean, however, that companies in this industry are the only ones worth investing in. The most important factor that should influence your decision on investing your capital should be concrete data about the company. This will let you predict if the company has chances for development or if it is a project that will end before it takes off.

In this case, it is advisable to listen to specialists who know the stock market and provide knowledge about it. A great example is Alexey Kirienko EXANTE. Despite his young age, he has extensive knowledge of investments, that is why Anatoly is renowned expert of the stock exchange.