What's the Best Strategy for Buying Individual Stocks (and Crypto?)

More and more of us are realizing how difficult it is to outperform the stock market, yet if you are like me, you still love the idea of being part of something that could go big—so we pick individual stocks. This post is dedicated to those looking for the best strategy for buying individual stocks and crypto investments.

Principle 1: Invest for the Long Run

Avoid investing based on hype or short-term trends. Instead, focus on assets that you believe will perform well over the long term. Investing with a long-term mindset helps you avoid emotional reactions to market fluctuations and makes it more likely that your investment will have time to grow.

Principle 2: Pick Your Exit Date

One of the best things you can do when buying a stock or crypto asset is to decide in advance when you will sell. Setting a sell date from the start helps you avoid common psychological pitfalls that lead to poor investing decisions. These include:

• Overconfidence – Thinking you can consistently predict market movements.

• Biased Judgments – Interpreting new information in a way that confirms your beliefs.

• Herd Mentality – Following the crowd rather than making independent decisions.

• Loss Aversion – Holding onto bad investments too long to avoid admitting a loss.

• Pride & Regret – Making decisions based on past experiences rather than sound strategy.

For more on behavioral finance, check out A Random Walk Down Wall Street by Burton Malkiel, particularly Chapter 10.

Principle 3: Go All In (Lump Sum Investing – Don't Dollar Cost Average)

Investing money gradually over time may seem like a safer approach, but it often reduces your time in the market and increases opportunities for emotional decision-making. If you believe in a stock or crypto asset enough to invest, you should believe in it enough to invest your full amount immediately. If that feels too risky, then it’s a sign you shouldn’t be investing in it at all.

For more on why lump sum investing beats dollar-cost averaging, see this study by Vanguard.

Principle 4: Avoid Watching and Researching Your Investment

Once you've invested, put your sell date on your calendar and forget about the stock or crypto asset. Continuing to track and research it can lead to unnecessary stress and irrational decisions. You’ve already done your homework—now it’s time to wait and let the investment play out.

Crypto investors especially struggle with this, as constant price swings can make it tempting to react emotionally. However, reacting to every dip and surge often leads to bad decisions. Trust your original investment thesis and stick to your plan.

Principle 5: Stick to Your Sell Date

When your predetermined sell date arrives, sell—no matter what. Whether your investment has seen significant gains, losses, or little movement, sticking to your plan prevents emotional decision-making. After selling, it’s often best to reinvest the money elsewhere. If you want to reinvest in the same stock or crypto asset, approach it as if you were evaluating it for the first time, without considering past performance.

Conclusion

Outperforming the market is tough, but following these five principles gives you the best chance. By investing for the long run, setting a sell date, going all in, avoiding constant monitoring, and sticking to your exit plan, you can remove emotion from your investing strategy and make better financial decisions—whether you’re investing in stocks, crypto, or both.