When Is The Right Time To Buy Momentum Stocks?
There's an old investing adage that says the most excellent way to make money is to buy low and sell high. However, there is a less popular technique to profit from Wall Street by locating the most significant momentum stocks.
In summary: buy low and sell high. Certain high-flying momentum stocks are expensive for good reason and are expected to see continued and sustained gains.
Finding the most significant momentum stocks to buy right now isn't always a matter of using fundamental analysis. There are a lot of high-flying stocks that could be doing better right now. They are somewhat speculative wagers on what they will become in the future.
This entails taking a step back and focusing on the following factors: sentiment, long-term charts, and comparable returns.
Stocks prone to upward momentum are frequently prone to large downward swings when sentiment shifts. That implies that if you buy at the wrong moment or in the incorrect stock, you could have a significant loss rather than the large return you planned for.
