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Cryptocurrency Value Outlook Investment System - Web3 Cryptocurrency Trading Platform
Most investors speculate on price trend investing,
Long-term thinking value investing looks at value outlook investing.
Faith in price trends depends on fate,
Continuously rising investment targets bring a hardened faith bubble,
Once involved,
The value structure is abandoned,
Risk reversion is the endgame,
Expecting the goddess of fate to favor, riding a sedan chair every day, stock prices soaring daily,
It’s hard to say it’s the right path, but participating and enjoying the asset bubble,
Feels delightful.
Value outlook depends on securities analysis + business outlook analysis,
This requires continuous evolution of investment cognition,
Relying on accumulated cognitive strength to elevate independent thinking and evaluate reasonably reliable business prospects,
Compare with current stock prices to generate a reasonable safety margin and cost-performance evaluation,
As a basis for trading decision-making; through cycles of low-risk zones buying low and selling high,
Gradually forming an investment system and matching practical cognition.
The righteous path in the human world has become more seasoned,
Very difficult.
For example,
Virtual currencies themselves do not generate operational value,
The global virtual currency market cap has reached 4 trillion USD,
Bitcoin accounts for about half,
Just over 2 trillion USD.
From a value perspective,
Bitcoin is like a company without physical operations or profit-making ability,
But with a market cap of 2 trillion USD,
This bubble is already quite large.
But the market caps of the 7 major US stock indices are 2 trillion,
3 trillion,
4 trillion, with even bigger bubbles,
It’s hard for companies to earn the same cash flow within 10 years,
There aren’t that many profits in the market, so why do virtual currencies keep rising,
And the 7 major US stock indices keep climbing? Because behind them, US debt expands to a scale of 40 trillion USD,
The US printing machine is still roaring,
Investors hold cash,
Inflation forces investors to find investment targets,
Look for good price trend investments,
Falling into the illusion of continuous price increases.
Bubbles will burst,
Including the continued expansion of US debt,
The credibility of the dollar will also be devalued.
Value trend investing is an advanced form of value investing,
Value investing looks at value,
Value trend looks at the value trend of business operations; first, it’s necessary to clarify the source of business value assessment,
If the assessment is lenient,
Value investing also creates its own value illusions; valuation should consider the concept of cash flow discounting,
Generally, the sources of value are,
The value of operating assets formed by past business activities,
The value of inflation-resistant resources or assets owned by the company,
The future cash flows and growth prospects brought by the company’s future competitiveness.
The basis of value assessment and value trend assessment is similar,
But many aspects of value in each company are difficult to evaluate and very important,
For example, talent value in tech companies is hard to quantify,
For example, the morale of a company’s core management team is hard to quantify,
I won’t elaborate here.
Stock investment makes investors uncertain because stocks have both operational value and market price fluctuations,
So everyone can invest based on their understanding,
Basically, clear understanding of value trend investing,
Long-term low-risk satisfactory returns are already quite good,
And there’s no need to participate in market price trend risks,
Instead, one can leverage uncertain price trends.
For most value investors,
Because they see the current fully priced risk-reward,
Following the market fluctuations,
They might think it’s better to do value speculation,
Or even better to believe in virtual currency price trends.
Why is value trend investing so seasoned? This is an inevitable part of familiarity,
It’s tough! Few people have enough life experience before stock trading to be suitable for professional trading,
Initially constrained by capital,
Then by cognition,
Lacking learning targets,
And thinking deeply is also difficult.
Continuously accumulating practical cognition and evolving,
After various milestones and breakthroughs,
The safety margin of holdings continues to improve,
Facing future uncertainties or various valuation bubbles in the market,
Knowing one’s origins,
And knowing where to go in the future,
Gradually forming a value trend investment system,
Preparing for contingencies; the Valley God never dies,
Safety margin outlook + contingency,
The root of trend-based value investing; not trading and staying proactive is daily routine
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