5 Tips To Identify A Winning Stock


As the world is advancing into a more digital and electronic pattern of doing things. Different ways of trading, buying goods and services, stocking, and investing are very much on the increase.

Therefore, making a better investment plan and decision is very essential to flow with the current trends.

Fortunately, reliable resources such as Investopedia and  Invezz are available if you want to get a total grasp on how to identify a winning stock in the investment world and also a simplified guide on how to understand, invest and nurture a secured future to attain your financial goals and also continue reading this article.

Knowing that the purpose of investing is to look out for winners. How to value growth shares? They are a variety of stocks that have higher precision of giving a specific return to the investor. With a condition of buying the stock at exceptional valuations.

  1. Price Growth Persistence:

Any stock that is on the lead is doing something others are not doing, in a unique way that is making them win. Which may enable it to experience an above-average earning stability, higher margin, and a much higher earnings growth than its competitors.

Fortunately, they tend to have a strong price growth persistence, which enables them to fall less or rise when the stock market of their peers decreases.

Investors are trained to buy the stock when they are relatively cheap because buying stock with a strong growth persistence may be contradicting sometimes.


  1. Stating Your Investment Goal

Most investors are devising different means to accomplish their investment goals. Young traders tend to invest and build wealth for their retirement. While the advance investors may likely be interested in capital saving so they can be more comfortable when they might have retired.

While others may be interested in getting a steady cash outcome from their investments, dividends and other cash distribution.

Investors who wish to have higher returns from their investments in the future, try to invest in different assets, stocks, and investment vehicles that will result in a more profitable outcome in the future. Such investors are always ready to take great risks as long as they get greater returns.

Lastly, some investors who are so conscious about wealth and capital preservation, tend to avoid investments with risk the best way they can.

Choosing a reliable type of investment will help you determine the type of stock and investment that will work in favor of your trading experience.

  1. Look Out for Companies You Can Understand and Love Investing In

Trading and buying of stocks, basically entails you are buying a part of a business or a company’s share. Because it makes you a partial owner of the business, as little as the shares or portion maybe.

Knowing and understanding the company you have decided to invest in will greatly reduce the chances of it becoming unsuccessful.

A nice way to begin is to state the type of services and products you use more often. And also take your time and question yourself if you are willing to invest. You can also consider the company that has made a significant impact in your life.

Immediately after getting the list of companies you might be interested in, the next thing is to do thorough research on the company to see the one that best suits your stock investment needs. 

  1. Look Out For Competition In the Different Companies

At this point after carefully selecting the varieties of companies whose stock you will be interested in, it is then necessary to narrow them down.

Firstly, you will have to note if the particular company has a competitive advantage and a company with such quality has a positive impact on society, attract public interest, and facilitates growth.

Furthermore, aside from checking if it has a competitive advantage, also check if it is sustainable, such that there are no obvious competitors. Also consider their brand, scale, intellectual property, and their placement.


  1. Check Out How the Company Handles its Dividends

This is another way of identifying a winning stock, by checking a company’s dividend rates, having known that investing in a company that pays dividends is a brilliant strategy of investing. But you need to observe how the company treats dividends. 

This means that aside from getting a dividend when an investment has been made, the dividend rate will continue to increase every payment time. This can be of great advantage to people who reinvest their dividends.

Conclusively, you need to carefully study the stock market with relevant research, to identify a winning stock and also a better platform to invest in, also a winning stock tends to continue dominating.