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In the world of stock trading, the question, "What are today’s Top Stocks?" is constantly being asked. Some people think it’s a loaded question and one that is impossible of being answered. To some extent that theory may hold water, but the task of finding today’s Top Stocks is very attainable. It takes time and commitment (and a lot of trial and error). There is not one absolute answer to "What are today’s Top Stocks?" It’s a combination of knowing what the trends are foreshadowing, what the history is, and what your personal interests are as a trader. Even more than that, it means knowing what your "trading psychology" is. Here are some tidbits on what I’ve learned about finding Top Stocks.
First off, if you’re new at trading altogether, you should familiarize yourself with the basics and the lingo before looking into finding the Top Stocks. Don’t worry! It’s not too hard, and there are plenty of beginner trading websites out there!
Once you’ve got the basic fundamentals down, it’s important to create and realize your "trading psychology." Two examples of opposite extremes of this spectrum are: 1) People who buy stocks and leave them alone for a long period of time, and 2) People who buy and trade stocks every day – all day. I have personally found it less nerve-racking and less time-consuming to be like the former example. For that reason, when looking for Top Stocks, I look for ones that have been slowly, yet steadily, climbing for a long time. Those stocks match my psychology and therefore, those would be my Top Stocks. If you are someone who "plays the stock market," then it gets a little tougher (note: the "time and commitment" reference above). With that trading psychology, you need to know a lot more about the culture of stock trading – trends, history, particular industries and how mergers and acquisitions will affect these stocks, which will in-turn, affect these stocks, and so on. There are so many factors that influence the market that I could tell you about, but we’ll save that for another article.
This article is solely for the purpose of knowing how to realize your person trading psychology and what that means for you and your trading techniques. "Playing the stock market" is a tough business and definitely one of the most cutthroat ones out there, so be careful. Top Stocks are different for everyone as you’ve seen. Now, go and find yours!