As with ANY average you will always have shares outperforming and under performing the average. Do a research . Now with all the doom and gloom about how low these markets are heading.
How it is impossible to make money as a bull in this market would you be surprised by these numbers?
26 stocks in the markets have made over a 200% return this year! 7 of these stocks have gone on to make over a 500% return this year! 3 of these stocks have gone on to make over a 1000% return this year!I have had some huge success with stocks such as:
MOVI +84% ALLY +67% THQ +59%
So it's not all doom and gloom.
When the market averages turn sour - You now have to trade the small cap momentum stocks!
Didn't CNN say this is a bear market and there was no money to be made by the bulls? Well seems like someone is wrong.
Bottom line: Market conditions are tough. The big cap stocks are falling far and hard. Mutual funds are losing buckets full of public money. The public are switching off the stock market in their droves as those market darlings they held last year are sinking lower and lower. But you are doing the wrong thing. Completely the wrong thing!
In a run away bull market you want to be INVESTING in the
BIG CAP Momentum stocks. There simply is no better or easier way to make a lot of money.
But when the market averages turn sour you have to change your strategy. You now have to trade the small cap momentum stocks! his is where the money is being made now. The last thing you want to do now is leave your hard earned money invested in Yahoo, SUNW, QComm in the hope they'll bounce back.
It won't happen in our lifetime. Yahoo and a host of other high flying stocks in the 2000 bull market have had their day in the sun. It will not be repeated! Their bubble burst a long time ago. If you can't stomach the stock market any-more then get out!
If you are willing to give it another shot with a slightly different approach then order MSTS now and start trading in those small cap momentum stocks. This is where the money is!
How long can the market keep heading lower? Well I hate to keep repeating myself but the fact is noone knows. Some bear markets in the past have lasted over five years. Does it look as if the markets can head higher from here? Do general conditions warrant a new bull market cycle? I see absolutely no sign of that.
Keep your ears closed and trade what you see. Right now I see lower markets ahead. Keep out of the large cap stocks.
In the stock market, almost all stocks fit into three categories; large cap, mid cap and small cap stock. There are other categories like micro cap stocks or mega cap stocks but there is no standard rule and most will fall into the big three categories. Specifically, small cap stocks are usually considered to be any company whose market capitalization is somewhere between $300 million and $2 billion. This is not an exact definition and varies from one investor or brokerage house to another, but you get the idea of what people are referring to when they talk about small cap.
The small cap companies may be in the situation that they are for many reasons. It might be that they are a recent start-up or that they are a once large company that is in the stages of winding down because they have become obsolete or did not change with the times.
These small cap stocks have both advantages and drawbacks to them. Looking at the drawbacks first, they are not necessarily proven companies, and without the capital that a large blue chip company would have they do not always have the means to change direction if they see an opening in a market. As smaller companies, if the operations fail there is not as much of a safety net that is the ability to liquidate and suffer a loss. Often a loss of market share can end up being more catastrophic for a small company than a large one.
On the advantage side they have growth potential. If you consider the companies that were once small cap you will see just how much potential. There are a few Microsoft millionaires out there, and for those people who got in early they saw their stock increase in value in numbers that are hard to believe. In recent years there have been big winners as well. When you look back on what has happened in the last decade it seems to be perfectly obvious why some companies rose to the top but they were just unknown small cap stocks at one point. Look at companies like Research in Motion. The blackberry is well known now but it wasn't always that way. If you see a company that has a product that seems like everyone will want one that is the kind of small cap company that you want to invest in. Ideas and the patents that protect them are often the strongest assets that these companies have.
Both Mark Crisp & Flinnk Clinton are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
Mark Crisp has sinced written about articles on various topics from Investing and Trading, Finances and Hot Stocks Pick. Mark CrispThe Momentum Stock Trader. Mark Crisp's top article generates over 18100 views. to your Favourites.
Flinnk Clinton has sinced written about articles on various topics from Day Trading, Forex Online and Finances. For more details visit us at . Flinnk Clinton's top article generates over 18100 views. to your Favourites.