Gear Up Trading with Momentum Stocks

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<h1>Gear Up Trading with Momentum Stocks</h1><strong> Author: <a href='http://www.articleseen.com/profile_Peter Larch.aspx'>Peter Larch</a></strong><br /><p> Typically, stock trading is seen as a game of losing or making huge money with the blink of an eye. High returns may encourage even a new or seasoned daytraders equally. Many traders prefer trading with momentum stocks that have high returns graph for the last 3 to 12 months. Such stocks can double or possibly triple invested money in a short time of just few months. Investors usually hold such stocks for some months and then sell it to earn profits. Some stocks may even make returns to range between 100% and 300%. Momentum stocks trading involves speed and quick decisions that can be confusing for new traders. Here are some simple pointers to identify hot stocks easily: • Such stocks have strength to outperform over 90% market stocks in a timeframe of 12 months • At times of Indices decline, these stocks show strength by either holding or exceeding their highs • At times of Indices rally, these stocks lead the rally with new highs • The balance sheet of such stocks show accelerated growth • Accelerated earning per share over the last quarter also indicates the hot stocks for momentum trading • The return on equity for the stocks to be considered for momentum trading must be above 17% • Trading volume and share prices can also be strong indicators of potential stocks, trading in stocks below $5 should be avoided • Positive forecast by some expert analysts can too be helpful in identifying potential stocks for momentum stocks trading but keep a watch on its reported earnings to be notably exceeding forecast Momentum and hot stocks trading involves a process that new investors might have to learn in order to earn 100 to 300 percent returns in a short time of a year or may be few months. Getting the process correct is the key to have successful trade. How To Get The Process Right? This means spending a little time to research every evening to find out potential stocks and otcbb stocks. This might also mean following a routine to structure your day by reading some informative content such as penny stock newsletter or other useful blogs to spot potential stocks for good investment. Make a list of all the potential stocks and start tracking their market performance. All this has to be religiously followed as a daily routine. A trading routine can certainly help you to have well informed momentum trading with minimum risk and high returns through momentum stocks. </p><strong>About the Author:</strong><br />If you are one of those serious <a rel="nofollow" href="http://www.daytradershangout.com/">daytraders</a>, then visit this site to smartly understand about the latest market trends and achieve your full financial potential.<p> Article Source: <a href='http://www.articleseen.com/Article_Gear-Up-Trading-with-Momentum-Stocks_270104.aspx'> http://www.articleseen.com/Article_Gear Up Trading with Momentum Stocks_270104.aspx</a></p>

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Keywords : penny stock newsletter, momentum stocks, daytraders, otcbb stocks, hot stocks,

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