As an investor, it can be difficult deciding which stocks to buy first. The London Stock Exchange lists over 1,000 different stocks from over 100 countries. This means there’s a multitude of companies, sectors, and trends to choose from. It’s daunting, to say the least.
I like to follow a long-term investment strategy, which means I opt to buy shares in companies I think will be here far into the future. These are usually FTSE 350-listed companies or well-established American brands such as Amazon.
Nevertheless, I’m often tempted by momentum stocks in exciting new sectors. Argo Blockchain (LSE: ARB) is one such stock. It mines for the famed cryptocurrency Bitcoin and has risen to prominence in the past year as the price of Bitcoin soared. But it’s extremely volatile and while the momentum can be enticing, I think it’s wise to look at the bigger investment picture.
A fluctuating share price
Argo Blockchain is a stock on a roller-coaster ride. As a Bitcoin miner, it closely follows the trajectory of the Bitcoin price. This explains the crazy volatility this stock has seen in…
