The Best Stocks To Buy in 2019
With the new year upon us, the question on every trader’s mind is this:
What are the best stocks to buy in 2019 ?
Unfortunately, there isn’t a simple and concise answer to this question. If there were, every trader would be rich!
Before you can determine the strongest stocks to trade, it’s important that you take a few steps back for a more comprehensive view of what affects price movement.
It’s imperative that you develop an understanding of what makes not just particular stocks but an entire sector hot. This way, you can learn to anticipate trends and position yourself in the advantageous place of being ahead of the curve.
What makes a sector hot, and why do these hot sectors matter? This is the first installment of a series of posts intended to explain not only what a hot sector is, but why they matter, and how you can learn to identify them.
I’ll start by explaining what a hot sector is and how to find it here, and in the coming weeks, I’ll offer more specific examples of some of the emerging sectors in the current market.
What Is a Hot Sector?
In the stock market, a hot sector refers to a particular type of stock that’s experiencing serious momentum.
This happens all the time in the market, and every year there are several stocks that will experience huge gains, usually within short time periods.
You could think of them as top-40 hits: they’re everywhere, they’re ubiquitous, and then one day, they’re gone.
Stocks can be like this: they ascend, they start to trend, and then they eventually taper off.
Some examples of hot sectors within the past few years? Cryptocurrencies/blockchain, AI (artificial intelligence), and most recently, weed stocks.
The Trouble With Hot Sectors
The trouble with hot sectors is that once they’re hot and everyone knows about them, it could be that you’re already behind the curve.
While there can still be potential profits to be made, you may be missing out on the ability to take the fullest advantage of them as a swing trader.
Ideally, you want to be proactive, not reactive.
But how can you figure out what sectors will peak ahead of the curve?
Very few traders know how to identify and take advantage of these stocks, which could be 30-300% gainers if you find them ahead of the pack.
Therefore, rather than focusing on what the hot sector is now, a better approach is to think: What will the next hot sector be?
Seeking Out Momentum Before it Happens
In my 20+ year career as a trader, I’ve become known for one key thing: seeking out momentum before it happens.
No, I’m not some sort of financial soothsayer. Rather, I have developed a reliable system of sniffing out the good stuff in the market.
There are specific things I look for in a sector, and key characteristics that I look for in potential stocks and trades.
How to Find Momentum Ahead of the Curve
Here are some of the major things I look for I rely on to identify momentum ahead of the curve:
Who Is the Sector Leader?
Each year, there are several sectors that heat up rapidly. Usually, there’s one company or stock leading the pack. Once that sector leader blows up, it can lead to a similar reaction with other stocks.
Even if they aren’t related to the company or stock in question, an association to it (a similar field or industry) can drive up the price of similar stocks, even if they don’t have anything major going on. This phenomenon is referred to as sympathy trading.
By identifying the sector leader, you in effect open up an entire sector to yourself for potential trades before the masses are on to the trend.
Seek Out Earnings Winners
Some of the biggest winners start as earnings winners, or companies whose quarterly earnings exceed expectations.
Finding earnings winners requires that you learn how to read earnings reports, which can help you determine which companies are in a good position to grow.
What Are the Hot IPOs?
Each and every month, a handful of companies make their initial public offering (IPO for short). This is their debut on the stock market as a public company.
For traders, an IPO can be a fantastic opportunity to get in on the ground floor and grow with the company.
However, the problem is that not every single IPO is a worthwhile stock to trade. It’s important to learn what signs to look for in an IPO to determine its worthiness as part of a portfolio.
What Do the Charts Say?
I don’t just rely on my gut or what I’m reading in press releases to identify potential trades. It’s one thing to get an idea of what the emerging trends might be, but it’s important to back up your findings with cold, hard research.
Making use of momentum charting indicators is one of my go-to strategies for finding momentum stocks.
SwingTrades With Paul Scolardi
My name is Paul Scolardi, and I have made a career out of identifying momentum stocks before they peak and taking advantage of them as a swing trader.
I’ve figured out a reliable system of identifying sector leaders, earnings winners, and hot IPOs ahead of the curve, and have used it repeatedly to become a self-made millionaire.*
Are you interested in joining me as a trend seeker and swing trader? If so, consider joining my SwingTrades program. In the program, I teach my students exactly how to get ahead of the curve so that they can figure out what stocks are most likely to be big gainers in the coming weeks and months.
I’ve taught over 1,400 students from over 50 different countries. Many have reported several hundreds of thousands of dollars in profits, and I even have a reported millionaire among my students!*
By joining SwingTrades, you’ll learn my most reliable swing trading strategies so that you can be better positioned to make the most of hot sectors as they emerge!
Are you ready to get ahead of the curve? How do you plan to get there? Leave a comment and let me know.