Five Tips to Finding Momentum Stocks
How To Find Momentum Stocks (stocks with upward momentum)
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Momentum stock trading is a well-established method of trading that has been exceptionally profitable for traders for decades.
Many stock traders have created huge amounts of wealth by finding momentum stocks. I love momentum stocks and this article will hopefully give you some helpful tips and tricks on finding momentum stocks as early as possible.
Scanning for momentum stocks is not always easy but it can be very lucrative if you know what you are doing. Stocks with upward momentum tend to continue in the short-term and it is relatively easy to ‘hop on board’ and make some profits.
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>> CLICK HERE TO LEARN MORE! <<
This Training Simplifies the Process of Scanning for Momentum Stocks
Bullseye Trades: Best Alerts Service
Every Monday at the market open, Jeff sends you his weekly Bullseye Trade.
2022 has been AMAZING for these Bullseye Trades!
(+50% to 300% per week in my experience)
How To Find Momentum Stocks
Momentum traders often find stocks that increase in price from 100% to 300% within just months or a year.
Novice momentum traders often find it very difficult to find the correct stocks to trade. It is my aim in this article to give you a few of my momentum stock picks and to teach you the how to find momentum stocks that have the potential to make you huge profits.
Before we go any further here are my top 4 long-term swing trades for 2017:
- $TRTN
- $DAN
- $AAOI
- $WD
I will let you do your own due diligence on these potential momentum stocks. The rest of this article focuses on the criteria that I used to find these particular momentum stocks.
Remember that momentum stocks can turn on a dime – don’t let this happen to you!
5 Steps to Finding a Big Winning Momentum Stock
Here are my momentum stock rules for finding the best momentum stocks on the market, these are rules for longer term momentum holds:
1) Year over year growth of EPS (earnings per share).
2) Increasing share volume and a minimum volume of 200,000.
3) Minimum of 10% ROE
4) The stock should be a Sector leader
5) Stocks that make highs, break highs! Price should be HIGH. Forget ‘buy low sell high’.
How to find high momentum stocks – an example of how finding high momentum stocks can make you ALOT of money! You can check out Jeff Bishop and his momentum trading strategy for more information.
Momentum Stocks Should Show Strong Fundamentals
Momentum trading is all about motion – never buy a stock that is just trending sideways. You want to find a stock that has strong fundamentals (check out the balance sheet carefully).
You are looking for accelerating growth above everything else. Do not settle for stocks that are growing below an average rate – always select stocks that have high EPS and significant growth over last quarter and the same quarter from the previous year.
LEARN HOW TO WIN 90% OF YOU TRADES IN 90 SECONDS!
>> CLICK HERE TO LEARN MORE! <<
The reason that this works is that there are many funds on Wall Street that are doing a similar analysis and they love this type of story.
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You can also watch a full interview with Nathan Bear discussing the Profit Surge Trader system here.
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Investing Wizard Who Turned $37K Into $2.7M in Just 4 Years Makes His Next Big Move
 |
He started from nothing and became a multimillionaire…
He’s now one of the most sought-after trading experts…
Yet he operates 858 miles from Wall Street.
And now, he’s revealing his #1 favorite strategy that targets MASSIVE weekly profits with just one stock ticker.
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If a company has increasing EPS it can attract the funding of an institution (aka tuts) which leads to strong hands in the stock and more increase in share value over time.
How to find momentum stocks? $ROX was a great momentum stock last year but the momentum is fizzling out!
How to find high momentum stocks – Strong Market Players
This also touches on the points made above – with momentum stocks you are always looking at metrics that will attract institutional buying.
Big mutual funds or large investors will only buy in if there is clear potential for continued market domination and growth. They will screen using similar criteria to my 5 key steps.
Bullseye Trades: Best Alerts Service
Every Monday at the market open, Jeff sends you his weekly Bullseye Trade.
2022 has been AMAZING for these Bullseye Trades!
(+50% to 300% per week in my experience)
How to find high momentum stocks – Stock Volume
Volume is used to signify that the price likely increase over time – usually volume actions precedes price action. On a more practical point, you need the liquidity to buy in or sell your shares in a momentum stock.
Stocks with upward momentum can be like rockets!
How to find high momentum stocks – ROE above 10%
ROE = (Company Net Income) / (No. shares investors hold). The higher the ROE ratio the better for your momentum stock picks. This is a very important metric – do not ignore it! I would actually prefer an ROE > 15% if I am going to heavily invest in a momentum stock.
High Momentum Stocks are Market Leaders
I learned this very easy but very important concept from my millionaire trading mentor.
It is very simple but very powerful! When the major stock indices are blood-red, the true market leaders will be green!
They will be trading close to all time highs in price and often have great increasing volume. This is the sign of a true market leading stock or company. A true momentum stock with great potential will ALWAYS outpace the market. Easy to spot right?
Up trends are your friends! Statistics have shown that a stock that is already trading in a strong up trend is six times more likely to continue upwards in price than a bounce for example.
WE can all do with an extra little odd or two in our favor in the market!
This guy (SuperTrades) is one of the first guys I learned about momentum stocks from! He is brilliant at finding momentum stocks – before they are momentum stocks!
LEARN HOW TO WIN 90% OF YOU TRADES IN 90 SECONDS!
>> CLICK HERE TO LEARN MORE! <<
Limited Time Deal to Purchase Nate Bear’s Profit Surge Trader ASAP HERE
You can also watch a full interview with Nathan Bear discussing the Profit Surge Trader system here.
*******************************************
Investing Wizard Who Turned $37K Into $2.7M in Just 4 Years Makes His Next Big Move
|
He started from nothing and became a multimillionaire…
He’s now one of the most sought-after trading experts…
Yet he operates 858 miles from Wall Street.
And now, he’s revealing his #1 favorite strategy that targets MASSIVE weekly profits with just one stock ticker.
*****************************************
Scanning for Momentum Stocks
Momentum trading all begins with finding a stock to buy. Scanning for momentum stocks is very easy – all you have to do is go to Finviz.com and set the screener to ‘ New high ‘ or ‘ Over bought’.
This will give you a list of all the stocks that are currently showing strong bullish momentum. When scanning for momentum stocks I like to find stocks that have RSI above 70. These are usually the stocks with upward momentum that I can ride on for some nice profits.
Money Management when Finding Momentum Stocks
The last thing I would like to emphasize is that finding these momentum stocks is just step 1. You must manage the positions with skill or you will still lose money.
Momentum traders know that you must add to winning stocks on dips and cut losers very quickly.
Bullseye Trades: Best Alerts Service
Every Monday at the market open, Jeff sends you his weekly Bullseye Trade.
2022 has been AMAZING for these Bullseye Trades!
(+50% to 300% per week in my experience)
This takes a bit of a mental adjustment and will come with experience. Master these steps and you will enjoy swing trades that return more than 100% gains in the matter of months. If you learn how to find high momentum stocks, you will never look back!
Good luck Trading and please feel free to share this article using the buttons below to help spread the word!
Thanks,
Wesley.
Related Articles
Here are some of the traders that I have learned momentum trading from over the last few years.
How to trade stocks for beginners
Do you have any tips on how to find momentum stocks? We hope you found our tips and tricks for scanning for momentum stocks helpful. Stocks with upward momentum can be a gravy train if you know what to look for.
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