How to choose an investment project

How to choose an investment project

Follow the DIRECT principles to get the best investment solution.

I would like to reveal a topic that concerns everyone who reads me, and will also definitely concern if you found this post on the Internet. I would like to share my thoughts on what are the important factors to consider when choosing an investment target.
As you know, I am a trader with many years of experience since 2009, the founder of the LUX trading system, managing a PAMM account with a balance of more than 6M dollars. However, not everyone knows that I am also an investor. First of all, the current PAMM account is also an investment project, because I invest in the development of the team, in the maintenance of the team, and also, my own funds (more than 3M dollars) that is 52% of the account balance are also invested in the PAMM account I manage. In addition, my investment portfolio also includes cryptocurrency, funds in private trading accounts and real estate. Thus, as you can see, I invest in projects that I’m interested in, but this is not the only principle.

I would like to highlight DIRECT principles that are of equal importance:

  1. Duration
  2. Interest
  3. Risk management
  4. Expectations
  5. Comfort
  6. Transparency

D – duration
This principle states that a project that has a stable history is more likely to remain stable. The long history of the project testifies to the experience and also to the fact that the project has already passed the stages of formation, crisis periods and has formed a resource base. Also, a long-term project is more likely to have already established standards and protocols for handling critical situations.

I – interest
This principle is based on the investors psychology and states that the project that you are not interested in will bring you less profit than the one you are interested in. It seems that these processes are absolutely unrelated, but practice is otherwise. According to statistics, an investor who is interested in delving into the details of the project, subconsciously makes more efforts to develop it, and as a result, this leads to increased profits.
Moreover, it is much more pleasant to feel part of what you like, this allows you to maintain peace of mind.

R – risk management
The principle states that the investment portfolio should be formed on the basis of risk management and take into account both the individual risk indicators of each project and the average one.
If you want to invest in a high-risk startup, then you will have to accept the risks associated with this project. If these risks do not fit into your risk management, then you are better off looking for a project with moderate risk but lower profit. On a personal example, I invest in real estate, with low risk and fairly moderate income. But at the same time, my investment portfolio includes investing in cryptocurrencies, which can entail high risk and high earnings. I invest only risk capital on a high-risk project, so I am ready to accept these risks. Thus, the average risk remains low and the return is positive as the portfolio is balanced.

E – expectations
The principle of expectations states that the investment project must be justified according to the payback. This is a simple rule that if the cost part is higher than the expected profit, then it is better not to waste time and money and find a profitable project. There are plenty of fish in the sea.

C – comfort
You should be comfortable in the current project. You should be comfortable communicating, working, using services, etc. This will give you the opportunity to develop your profits and be interested (principle of interest).

T – transparency
Transparency may depend on the specifics of the project, but at the same time, the project should not violate the principle of risk management, the principle of expectations and the principle of comfort.
It should be clear to you how much you can earn or lose and with what probability, and you should be comfortable with this.

According to the example of LUX PAMM, I can conclude for sure:

  • (D) The duration of the trading history since 2019 and the stability of the result indicate that the project continues to grow.
  • (I) I am extremely interested in this project and at the moment, this is my priority. I hope that you are also interested in reading the blog, communicating and getting the expected profit.
  • (R) Risk management in the LUX trading system is one of the most important areas. I wrote about this a lot, because it is important for me and investors.
  • (E) This year’s earnings exceeded expectations. When I sum up the results of the year, you will be surprised at how much we managed to overtake our goal.
  • (C) The LUX team does its best to make investors feel comfortable. We still have work to do and we do it every day. I believe that you are as passionate about this project as I am.
  • (T) Transparency of trade and the entire project is a task that I have set adhere to. You can see all the trades on the myfxbook online, I also make forecasts, which then form the basis for trading decisions, in addition, I publish video of trades and the trading process. Profit and shares distribution can be seen in the broker’s system in your personal area, where transparency is already broker’s responsibility.

Despite the fact that the principles that I have named are important to me, they can be individual for each investor. You can choose your own strategy or use mine, anyway, I wish you to receive the expected profit.

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