How to invest: Nvidia, Tesla reveal 3-step routine for bull and bear markets

Led by tech stocks, this year’s strong uptrend follows last year’s bear market and once again shows why investors need a strategy to deal with changing market trends and volatility in growth stocks such as nvidia (NVDA), Tesla (TSLA) and the parent of Google the alphabet (Google). One of the keys to successful stock investing is making sure you have a sound — and actionable — routine for investing in stocks in good times and bad.

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Backed by time-tested rules on when to buy, sell and hold, this three-step approach can help you navigate just about anything market indicators do. Depending on current market conditions, you will see how these rules and routines apply to stocks such as NVDA, TSLA, and Google stocks, as well as Amazon.com (AMZN), Microsoft (MSFT), apple (AAPL) and other names.

For example, these rules came into play for Nvidia and Tesla as they fell back to test support in the 10-week moving averages as market indices come under pressure. Meanwhile, Google stock continues to trade within a buy range.

The same guidelines apply for new IPOs to buy and watch. So while tracking household names like Microsoft and Apple stocks, use the same method for monitoring Underwriting leaders like on hold (Onon), Duolingo (by) And Procore Technologies (PCOR).

The routine below guides investors through three key steps to help you grow and protect your money. And you’ll find the checkers and stock lists you need to follow these steps quickly and with confidence.

Investing in stocks based on sound rules and stock valuations will help you stay profitable, protected, and prepared in any market environment.

Three key factors for a safe and successful stock investment

Find and track the best stocks to buy and watch

This three-step process also helps you track and deal with strong market trends, as well as bear markets, volatile periods, and sector turnover times. During both up and down cycles, growth stocks, technology stocks, energy toys, retailers, industry and other sectors will appear on Wall Street.

Tesla, Google, and Nvidia are just three examples of closely watched stocks that have had roller coaster rides in recent years. The same certainly applies to parents on Facebook Meta platforms (meta).

Buoyed by the rebound in ad sales and AI trends, META stock has made an impressive rebound after entering a long slump in September 2021. The AI ​​wave has also helped with shifts in MSFT, GOOGL, AMZN, MSFT, TSLA which are all a slew of so-called AI stocks.

One of the keys to gauging the strength or weakness of stock market indices and individual stocks is to see how they behave around the 50-day and 10-week moving averages. Do they find support or resistance? Investors may be asking this question right now for the NASDAQ as it tries to hold support at the 50 day line.

While checking out the general trends of the stock market, be sure to also track chart patterns in individual stocks as part of this routine. This helps you identify buy points and buy areas for potential and recent breakout stocks. Watching such technical analysis also helps you avoid getting sucked into any headline hysteria or hysteria. This approach helps you stay grounded Investor psychology under control, and stay focused on what the market and the leading growth stocks are actually doing.

Keep in mind that the direction of the stock market can change quickly – for better or worse. And there will be times when certain sectors, such as growth and technology stocks, will perform poorly while others show strength.

To focus on the best stocks to buy and watch that fit your investment criteria, use IBD stock screening device Browse predefined lists or create your own custom screens.

Study stock charts to find the top growth stocks to buy and watch

Nvidia, Microsoft, Apple, Tesla and other Big Tech stocks, such as Meta Platforms, Amazon, Google and Netflix stock. These are just a few examples of stocks that have shown exceptional performance across multiple market cycles. These stocks have also gone through turbulent periods of aggressive selling.

To study these winners, take a look at the daily, weekly, and monthly charts for Alphabet, Amazon, Tesla, Nvidia, Apple, and other traditional growth stocks. (If you’re new to technical analysis, see our section on how to read stock charts.)

And if you’re looking for the best long-term investments that have survived several volatile periods, check out the stocks that undervalue IBD’s long-term leaders. You will find names like Microsoft and Cadence Design Systems (CDNS).

To get started, review our coverage of current stock market trends and case studies of the leading growth stocks to buy and watch with Investor’s Corner.