Your search for stocks to buy today should start by looking for stocks that close higher on higher volume or what is referred to as a breakout. I personally look for stocks that breakout on a 2% percent price increase on volume 100% higher than the average volume. Why do you want to focus on stocks breaking out? That's because the best stocks to buy today are the ones that have institutional sponsorship. It's this sponsorship that drives prices higher. You are looking to ride that wave along with them.
The hard part is finding stocks that institutions are buying because they don't disclose it to the mainstream media. In fact, the exact opposite probably happens. When the media tells you to buy a stock, that is probably when they are getting out. Once this "advertising" starts to take place, it's purpose is to find buyers for the shares they are selling.
So, if they don't broadcast to the world what they are doing, then how do you know what stocks to buy today that they are buying. The answer lies in the breakout. Stocks that experience unusual volume and the price rises at the same time are under accumulation by the big money. Follow the money and you'll have a chance to make money on their coat tails.
You can find the best stocks to buy today that potentially have institutional sponsorship by watching the "Stocks on the Move" screen published daily in the IBD. Just about every stock that goes higher will show up on this screen. Watch it daily and add some of these stocks to your watch list and monitor it for breakouts.
This is where I start my search for good stocks to buy today and you should too.
Open Table, Inc. turned out to be one of the best stocks to buy today when it's breakout occurred.
Let's have a look at what can happen. Earlier this year, Open Table, Inc. broke out on huge volume and a large price increase. You can see what's happened since.
This stock has risen considerably since then. The reason behind the move is big money is behind it. Once the big money decides to get it, it has this kind of effect.
Will this always happen? No. That's why you've got to do additional research. Many breakouts will fail. Your goal is to find the ones that succeed.
You do that by watching stocks making big moves on huge volume increases, adding them to your watch list.
Eventually, you buy some of them. With experience you can find some hot stocks to buy today.
Good luck with your stock market investing. For more information check out my "Buying Stocks - A Case Study" series.
Links to the posts directly after that one:
Buy Stocks: Where I Started
Buy Stock: Follow The Leaders
How To Buy Stocks
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