Were you able to get on the GameStop craze last year? If not, you missed one of the most exciting and tumultuous times in the stock market’s history. What started as a way to stick it to wealthy investors made a lot of people scores of money.
Every investor dreams of finding a stock that will net them mind-boggling returns like GameStop. Unlike GameStop, however, most stocks don’t have coordinated plans that see their prices skyrocket. Instead, investors have to keep their eyes out for a trending stock that will be their proverbial golden egg.
But trying to find that big moneymaker isn’t easy. Here are some ways to help you find the next big stock.
News Coverage Can Create a Trending Stock
One of the most common reasons a stock will start to trend is due to news coverage about a specific event. The coverage doesn’t even have to be about the company or stock itself. News that affects a certain industry can make the price of many associated stocks soar.
Other news that can affect stock trends can include quarterly earnings and shareholder meetings, management changes, and a merger or acquisition.
It is almost impossible to get ahead of a trending stock based on news stories. The only way to catch them in time is if you’re already following the company.
Create a Trade Trigger
An excellent way to find out which stocks are trending is to use a trade trigger. This alerts you when the price of a stock begins to increase. You can set the trigger to alert you after the price moves up over a pre-designated period.
Most of the time, nothing of real value is happening in the stock market. Stocks rise, fall, and stay stagnant. A trade trigger can alert you when a stock is beginning to trend so you can buy it at a cheap price.
These indicators can also provide you with more info about when it’s time to consider a long-term investment.
An easy way to look for trending stocks is to look for unusual volume in trading. Most broker apps and trading sites will show the number of stocks traded daily, usually as a 20-day average.
The volume of shares moving in stocks can indicate whether it is trending higher or lower.
Look for stocks with climbing prices on higher-than-average trading volume. This indicates that the stock is on an upward trend. Look for stocks that are just entering a high-volume phase to capitalize on profit.
Get Ahead of the Game By Tracking Stocks
Everyone wants to find a trending stock that will net them huge returns. it can take a little bit of work, but anyone can find one if they have the patience. Keep your eyes on the news, create trade triggers, and watch for higher-than-average volume against climbing prices.
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