How to Find Top Stocks

Even Traders Want Fashion When They Buy Stocks. Many traders trade because of public opinion, not because the transaction itself makes sense. When a particular stock seems popular they are anxious, so they do not feel that they missed a chance. As a result, they end up buying at a price point where transactions may not materialize. You should always avoid "hot" stock emotions.

Here is an example: What you should not do when you buy a stock: Let's say you've been tracking a stock in the "hot" industry, it just announced the stock split. Now that the stock is now at $ 18, you calculate it can reach a split time of $ 25 or more. The market is currently bullish and looks like a great trade.

The problem is that stocks have been rising for the past four days. It starts at $ 12, but you do not notice until it reaches $ 18 and it's still rising. The stock split is a month's time, and you know it's going to drop between now and split prices. However, everyone is talking about this stock. If it continues to rise and become the next blockbuster? You are afraid that if you do not do a deal, you will miss a great opportunity. (Also, you want to be able to tell people that you have a place in the stock because it makes you look smart.) So you buy 1,000 shares at $ 18.50.