A catalyst based aproach
One of the ways to improve your returns significantly is to try and identify few of these stocks at the beginning of such quick moves.If you can find 5-6 of them in a month, it can make a lot of difference to your account. For that one needs to study such stocks over a long period of time.
One of the ways to find such stocks is to use a catalyst based approach.
All such fast moves tend to have identifiable catalyst at start of their move. Catalyst based approach requires understanding of such catalyst and their ability to move stocks. That is a skill worth learning. Research has shown many catalysts have a shorter term predictive power on stock prices.
AFR,American Financial Realty Trus (Google Yahoo Earnings Chart)
AGO,Assured Guaranty Ltd (Google Yahoo Earnings Chart)
ALTH,Allos Therapeutics Inc. (Google Yahoo Earnings Chart)
CBK,Christopher & Banks Corp (Google Yahoo Earnings Chart)
CDTI,Clean Diesel Technologies Inc (Google Yahoo Earnings Chart)
CEL,Cellcom Israel LTD (Google Yahoo Earnings Chart)
CSIQ,Canadian Solar Inc (Google Yahoo Earnings Chart)
DIT,Amcon Distributing Co (Google Yahoo Earnings Chart)
DIVX,Divx Inc (Google Yahoo Earnings Chart)
DLB,Dolby Laboratories Inc (Google Yahoo Earnings Chart)
ENS,Enersys Inc (Google Yahoo Earnings Chart)
FSLR,First Solar Inc (Google Yahoo Earnings Chart)
GFLS,Greater Community Bancorp (Google Yahoo Earnings Chart)
GLYT,Genlyte Group Inc (Google Yahoo Earnings Chart)
JCG,J Crew Group Inc (Google Yahoo Earnings Chart)
LUNA,Luna Innovations Inc (Google Yahoo Earnings Chart)
MIPI,Molecular Insight Pharmaceuticals Inc. (Google Yahoo Earnings Chart)
MTG,Mgic Investments Corp (Google Yahoo Earnings Chart)
NBIX,Neurocrine Biosciences (Google Yahoo Earnings Chart)
PCLN,Priceline.com Inc (Google Yahoo Earnings Chart)
PSPT,Peoplesupport Inc (Google Yahoo Earnings Chart)
SEAC,Seachange Internat Inc (Google Yahoo Earnings Chart)
SOLF,Solarfun Power Holdings Co Ltd (Google Yahoo Earnings Chart)
STEC,Stec Inc (Google Yahoo Earnings Chart)
STP,Suntech Power Holdings Co Ltd (Google Yahoo Earnings Chart)
SYUT,Synutra International (Google Yahoo Earnings Chart)
TECUA,Tecumseh Products Cl A (Google Yahoo Earnings Chart)
TECUB,Tecumseh Products Cl B (Google Yahoo Earnings Chart)
TELOZ,Tel Offshore Trust (Google Yahoo Earnings Chart)
TGIC,Triad Guaranty Inc (Google Yahoo Earnings Chart)
USBE,US Bioenergy Corp (Google Yahoo Earnings Chart)
VVTV,Valuevision Media Inc Cl A (Google Yahoo Earnings Chart)
WCG,Wellcare Health Plans Inc (Google Yahoo Earnings Chart)
If you look at the same thing on downside , currently there are 206 stocks down 25% or more in a month. Just a few days ago this number was over 400. Tracking such stock moves on daily basis and building a model of what makes stock make such moves is what can prove rich dividends.Once you put sufficient effort in identifying such catalyst over the years, you become better at identifying such stocks at the start of a move.
Capturing 2-5 of such big moves on a regular basis on monthly time frame can make a vast difference to your returns.
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