How to choose what to invest in

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Choosing which stocks, cryptocurrencies, or commodities to invest in can be a daunting task, but there are some general principles you can follow:

First do your research: Before investing in any asset, it's important to do your due diligence and research the company or commodity. Look at its financials, market trends, and any other relevant information that can help you make an informed decision.

You can then proceed to do a financial analysis of a company if you invest in one.

Financial analysis is the process of evaluating the financial health of a company or organization. It involves analyzing financial statements, such as income statements, balance sheets, and cash flow statements, to gain insights into a company's financial performance and position. The goal of financial analysis is to assess the company's profitability, solvency, liquidity, and stability.

There are several tools and techniques used in financial analysis, including ratio analysis, trend analysis, and comparative analysis. Financial analysts use these tools to interpret financial data and to identify patterns and trends that can help them make informed investment decisions.

Financial analysis is an important part of investment research, as it helps investors evaluate the financial health and performance of a company before making investment decisions. It can also help companies identify areas where they need to improve their financial performance and develop strategies to achieve their financial goals.

If you invest in cryptocurrencies or commodities a financial analysis may not always be possible.

You can then do a technical analysis of the asset you want to invest in.

Technical analysis is a method of evaluating securities, such as stocks, cryptocurrencies, or commodities, by analyzing statistical trends and chart patterns. It is based on the belief that historical price and volume data can provide insights into the future performance of an asset.

Technical analysts use charts and other tools to identify patterns and trends in the price and volume data of an asset. They look for indicators, such as moving averages, support and resistance levels, and trendlines, to identify potential buy and sell signals.

Technical analysis is often used by traders who make short-term trades, such as day traders, as it provides a way to identify short-term price movements in the market. However, it can also be used by long-term investors to identify potential entry and exit points for their investments.

While technical analysis has its critics, it remains a popular tool among traders and investors, as it can provide valuable insights into market trends and help investors make informed decisions about when to buy or sell an asset.

On my website there are dedicated articles to financial and technical analysis if you are looking for more information.