4 Ways To Find Great US Stocks Before They Spike Again

Learn how to find stocks before they spike again by 20%, 30%, 50% or moe than 100% with the strategy I will be sharing here, use it to find top gaining shares, trade online and make more money in AMEX, and Nasdaq market online.
How to Find Stocks Before They Spike

One common question people often ask me, after recommending the best online US stock broker for non-US residents or international investors, is how can one find a profitable stock to buy? or what strategy can one explore to spot great stocks that are about to rise up and break out?

From my own research and analysis of stock performance, on local and international bourse, I discovered a powerful fact, and that is: it's more dangerous to pick a stock at the bottom and wait for it to rise, why not find a stock that is already in an uptrend and ride on the growth to make money.

The strategy I will be discussing has the potential to make you more money, both in a bearish and bullish market. It doesn't matter what investors' sentiment is right now, you will spot the next best company institutional and retail investors are rushing into, to buy shares so you can take your share ahead and wait for the price to go up.

Here are some of the top gaining stocks I spotted as at 15/03/2016 when I explored this strategy with their performance as at 12/12/2016 when this article was posted:
  1. Amerigas Partner(APU) - $41.37 ( up by 7.5% to $44.47)
  2. Black Hill Corps (BKH):  $58.48 (up by 12.83%)
  3. CPFL Energia (CPFL):      $17.54 (up by 41.33% to $24.79)
  4. Companhia de Saneamento Basico (ADR): $ 5.88 (up by 40.47% to $8.26)
The average return on investment in this equity portfolio is 25% in 9 months, which is not bad compared to Nigerian stock exchange market performance in the same period.
Please note that we do not guarantee the same return on your investment in US stocks, seek appropriate advice from a professional financial adviser and invest what you can afford to lose.

So which strategy do you use to pick stocks like this?

This is the question you may be asking me right now, relax! here is the secret guide.
  1. First, take a broad look at the market and compare all the sectoral performances from year to date (YTD), last 6 months, last 3 months and 1 month (optional)
  2. Mark the top 3 hottest sectors in each of the periods and find the most common sector. For instance,
    1. YTD performance: financial service (20%), basic materials (32%) and consumer goods (12%)
    2. 6-month performance; consumer good (15%), utility (30%) and airline (10%)
    3. 3- month performance;  financial service (10%), consumers goods (10.8%) and industrial equipment (42&)
From these periodic performances, which sector is the hottest? consumer goods, why? it's been growing this year-to-date, in the latest 6 and 3 months period. That means, there is something going in consumer goods sector right now, you might want to find out by visiting top business news websites in the US.

The idea behind sector performance is that over 50% of a company's financial performance is driven by government policy in that sector and the overall impact. As we know in the banking sector, central bank policy plays a key role in shaping banks in Nigeria, so also is the federal reserve of US.

We are only interested in sectors that are doing well.
3.  Drill down further to find companies that are driving the bulk of the performance in the sector. As we have illustrated above, consumer sector is hot at 12%, 15% and 10.8% for YTD, 6-month and 3-month respectively, our focus now is to find stocks in consumer goods sector that have returned more than 12% from YTD, 15% and 10.8%  in 6 and 3-month period respectively. Such stock should be in an uptrend move too and have risen in the last 30-days too.

4.  Pick stable stocks with market capitalization of around $2billion - $10billion, positive 5-year revenue growth, lower debt-to-equity and are recording over 500,000 daily trade volume on average so that you can easily sell off.

How to pick the best stock to buy:

After screening your stocks and have finally found (like 3-5) possible trades, do a quick check on how each of these stocks performed when the overall market index (dow 30, S & P index or Nasdaq index) pulled back or went down, the stock that maintains upward trend in the midst of market sell off is what you should buy and keep.
But you don't need to go through this stress, as there are over 10,000 stocks listed in US stock market, you can donate or support this website to get our short report on how to do this analysis in less than 2 minutes.

If you try this strategy and it works, please feel free to share your comment.