Big moves need big catalyst | stockbee

5/07/2013

Big moves need big catalyst


8 to 40% move in stock is common and requires no catalyst.

But a 100% plus move is not common and it requires some catalyst...

When a stock doubles, there is some major reason behind the move...

If you want to catch big moves , look for stocks that doubled and then pullback or consolidate for few months...

Those are proven horses....

Something is going right for those stocks....


Catalyst that can lead to big moves

Earnings growth

Sales growth

New orders

Shortages

Govt policy change

Sector

Valuation

Turnaround

Drug approval or rumor of approval

in this market big moves are few. Unlike other market periods where at this stage there should be lot of big moves, we are stuck more in small moves market. That is largely due to lack of good growth stocks.

No comments: