Bull market or bear market, there is always an opportunity somewhere to make money. Yet, amidst the endless opportunities, many beginner investors find themselves constantly chasing ‘shiny new things’, without a consistent research strategy framework. This behavior tends to greatly cost their long-term portfolio performance.
Today’s article provides a step-by-step guide, sharing the importance of a research strategy and detailing how to personalize it to your existing skills, before providing a template for you to start using today!
Contents:
- Take Ownership of Your Investing
- Research Checklist: A Beginner’s Guide
- Portfolio Maintenance
One-Size-Fits-All- Conclusion
Take Ownership of Your Investing
It’s your money – only you are accountable for the results. Even if you got the investment tip from the most credible person you know, only you will be responsible for knowing when it’s no longer time to hold.
Like my mentor used to tell me: “If you want to make serious money, you need to treat this like a serious business”. Whether your portfolio is $100 or $100,000 matters less than the attitude and dedication you bring to the table. Money isn’t merely currency; it’s energy, a reflection of the respect and attention you invest into it. Diligent research, strategic planning, and disciplined execution are the cornerstones of success in investing, just like any other business venture,
So, regardless of the scale of your investment, approach it with the seriousness it deserves, and you’ll find that the returns over time will be exponential compared to the effort you invested.
Research Checklist: A Beginner’s Guide
Follow a research checklist and use it to provide a consistent evaluation across all of your investments. By using the same evaluation parameters every time, you will be able to:
A research checklist provides consistent evaluation across all your investments. Individuals who follow these set parameters each time will be able to:
- Easily compare projects against each other
- Quickly improve your own research skills within specific focus areas
So, what does this checklist include?
| Evaluation Checklist | Notes | Score (1-5 |
| Use Case Quality of use-caseUser count/user growth | ||
| Team & Partnerships Team previous experience AdvisorsPartnerships/affiliations | ||
| TokenomicsInflation rateCirculating vs fully diluted supplyToken % owned by insiders | ||
| Liquidity Market cap size Exchanges available, daily trading volume) | ||
| Road Map Clear growth plan Have they delivered on promises? Financial runway | ||
| Communication Communication frequency blog/Twitter /discord |
Portfolio Maintenance
Blockchain technology is progressing at an unprecedented pace, presenting both opportunities and challenges. To navigate this dynamic landscape, staying up-to-date is essential and enables investors to seize opportunities, mitigate risks, and thrive.
Below are some things to consider for your research maintenance:
Rapid Changes & Emerging Trends
New projects and technologies constantly arise, offering fresh opportunities. This means that today’s winning strategy may fail tomorrow.
Are there any new market leaders solving this use case since you last checked? Has a breakthrough or better way been developed? These are some of the key questions to ask.
Market Dynamics
Crypto markets are open 24/7. 24 hours here compared to an 8-hour workday in another industry means that changes can happen 3x faster. The re-evaluation frequency you’ve used for other investments likely needs to be adjusted accordingly for crypto. Keep this in mind.
Regulatory Impact
Regulatory changes influence market sentiment and behavior. Have regulatory changes helped/hurt the company’s growth plans? While the crypto market is global, the majority of users and financial liquidity originates from USA. This is an important consideration when evaluating local regulatory frameworks around specific investments or use cases.
Risk Management
Staying informed helps to effectively manage risks and guide when to adjust investment decisions. The most important here is to stay disciplined with your exit plan and move on if your original investment thesis becomes invalidated. T
here’s an old saying in markets: “Manage your risk, or the market will do it for you”… which can be interpreted to mean that if you don’t sell, the investment may become worthless soon, thus taking care of your need to act.
Maintenance Frequency
Review your investments often (every 3 months) and assess if your research checklist score has changed. If the score is lower, it may be time to sell, so you can allocate those funds to a better investment vehicle.
One-Size-Fits-All
For beginner investors, it’s crucial to understand that research and investing aren’t one-size-fits-all endeavors.
Each investor brings unique strengths, interests, and goals to the table. Rather than feeling overwhelmed by trying to conform to a specific approach, it’s best to embrace the journey, have fun, and focus on leveraging your strengths.
Whether it’s diving deep into technology, analyzing market trends, or identifying promising projects, aligning your investment strategy with your strengths can lead to more fulfilling and successful outcomes in the dynamic world of investing.
Conclusion
The “Research Strategy” lessons in today’s article can be your #1 tool to guide you through the noise and end up at your destination (financial goals) on time. By approaching your investing research systematically, you will be able to easily and quickly compare projects against each other, while simultaneously improving your skill within a focused area of expertise.
This research checklist and maintenance guideline is a great starting point for your journey towards becoming a professional researcher and crypto investor, but I encourage you to have fun with the process and tailor the approach to your own personal strengths and learning style, over time.
Finally, always remember: investments are simply just vehicles to get you to your ultimate goal of greater wealth. If a better vehicle becomes available, switch to the better vehicle if it can get you to your end goal faster! There is no shame in your investment being a loser if you have a system in place to help you identify that it’s time to move on!
Kujira Academy is a platform that aims to bridge the gap between young entrepreneurs and Web3, providing them with tangible education and career acceleration opportunities. Built by students, for students. Learn more about the academy and our vision here.
To register your interest and become a student of Kujira Academy, click here.
Written by Alpha