10 Tips on Finding Hot Stocks


by Mark Crisp - Date: 2008-07-05 - Word Count: 815 Share This!

Everyone else making a fortune in stocks and you aren't? Sick of watching stocks climb into space and you are not onboard? Want to finally make some profits the easy way in the stock market? You need my top ten stock trading tips:

1. Find them when they are still LOW!

A stock at its lowest point has no other way but to go up. You can make the most out of your money when you first bought the stock when it finds its way up. A stock that just reached the rock bottom has the most tendencies to go the opposite direction up and keep soaring.

Though you may say that this is a gamble for your part, but when a stock find its way up and keep its momentum; you find yourself a goldmine. Anyways, you went in with a very minimal risk.

2. The Early Bird Gets the Worm: Get them EARLY!

This is called penny stock investing. You get into the game from the beginning. It is common for these stocks to come up to as much as 100% on a 24 hour basis. A stock on its early stage has the most potential to find itself on the top of the food chain. When you identify these beginning stocks, you found yourself a good deal. You bought them cheap, you can sell them high.

3. Strike while the iron is hot: Get them when they are still rising!

In finding the rising stock, you can comfortably be assured that your investment is at the right track. A stock at a rise won't be there if it's doing something wrong. These kinds of skyrocketing stocks have larger chance to further go up because of right business decisions.

This kind of choice won't be much of gamble than going for a stock on a slump. The downside on this kind of option is the amount of money that should be prepared. Expect this type of stock to be costly. But hey! It's more or less a guaranteed profit.

4. Is The Business Making Money?

Ask if this company you are trying to invest on is really making money. You need to research on a company how they really do.

For example, you may consider that a fresh company is still yet to establish sales and profit. Though their ideas are feasible for marketing opportunities, fact still remains that it's still up for a start.

5. Does the Business Actually have a product?

Dwell into the gist and details of the company. What are they selling? How are they actually making money?

You have a hundred and one ways to make money. Have a bird's eye view how they generate profit. You can also check if others have tried it. Did they do well? Or was it a failure?

It helps if you are knowledgeable of the company's business model.

6. How many competitors are there?

It is a good sign if there are other companies getting into the bandwagon. The increasing number of competitors simply means that there is a demand. When there is a demand, your stocks tend to go up.

However, you must also note the number of competitors if there are already so many. If this is the case, it's hard to get into a business with so many competitors ahead already.

7. Is the Company a Leader or a Follower?

This tip is a follow up to number 6. When you have a good product out in the market and other companies try to venture same path; ask is the company a leader or a follower?

Know there history. Know how they performed in the past. How long have they stayed at the top? Did they find any slump and bounced back or did they have a successful past ever since?

Has the business established itself firmly that they will still be ahead even if there are already too many competitors?

8. Who are the people involved in the company?

Know who the investors in this company are as well as who's running it. Try to make a research on their past record. Did they have any past failure in their ventures as businessmen? Or do they have this colorful resume of success written all over it?

These things will get you ahead. Siding with the proper people will increase your chance of success in finding the right hot stock.

9. The Scandals.

Take a good look at their past deals. Crooked deals from their records are among the things to look out for. If the company you are eyeing has this kind of past, take our advice: DO NOT BUY ANY OF THEIR STOCK.

10. What's the newest BUZZ?

Good news regarding the company would increase their stock value up to 100%!

News about product releases and of similar content makes the buzz. This kind of news is an indicator of good things to come.

But a negative fuss on a company's product would lead your stock the other way. In that case, do not buy their stocks.


Related Tags: trading system, hot stocks, stock picks, stock newsletter

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