A winning stock has the potency to save your entire portfolio.

Winning stocks have the potential to outperform losing ones in terms of returns. As investors, we’ve all experienced our fair share of unpleasant stock market experiences. From alleged management fraud to the global financial crisis, the latest Covid outbreak, and sometimes it’s just our investment selections that don’t play out the way we expected! We’ll reveal a tiny secret to you. Don’t be scared if you’ve made the mistake of picking the incorrect stocks. Choosing a winning stock is a challenging endeavor, given the unpredictability surrounding how firms compete, develop, and adapt, potential technology upheavals, the influence of legislation, and an unexpected pandemic— the list goes on and on. So don’t be concerned about picking a losing investment. When it comes to forecasting the future, we may never have the upper hand! We may not be able to control the accuracy of stock choices. However, careful diligence and comprehensive investigation are unquestionably required. Investment experts have had similar experiences, but they have been quite effective at disguising them. The sky is the limit for our correct pick’s winnings! Year after year, the money you invested in the winning stock would compound, increasing your gains, all thanks to the miracle of compounding!

Now, how do you look for winning stocks? Here are a few characteristics of winning stocks.

1. CURRENT QUARTERLY EARNINGS – Stocks with increases in earnings of at least 25% in recent quarters.
2. ANNUAL EARNINGS GROWTH – A Company showing strong long-term earnings and growth, the bigger the better.
3. NEW PRODUCT, SERVICE, MANAGEMENT OR PRICE HIGH – Innovation, and the development of new game changing products and services, new management, and new industry trends can lead to huge gains in the stock.
4. SUPPLY AND DEMAND – Strong demand for a limited number of shares will push the price higher.
5. LEADER OR LAGGARD – Find the best of the best – leading stocks in strong industries that are showing superior earnings and sales growth.
6. INSTITUTIONAL SPONSORSHIP – Professional investors, like mutual funds and banks, account for about 80% of all market activity. You’re on the right track if you’re buying a stock they’re buying.
7. MARKET DIRECTION – 3 out of 4 stocks follow the market trend, so you always want to trade in sync with the market direction.