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.
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.
How to Invest: The 3 Step Investing Routine
1. Check current market trends with the big picture and the pulse of the market
Under the Market Trend tab on Investors.com, go to: The Big Picture
The first step is knowing what kind of market we are in right now. Is it time to buy stocks, or is it time to play defense and protect your earnings?
Find out by examining the pulse of the market inside the big picture. You will find a recommended market exposure level to help manage risk based on the current market environment.
This five-level approach to market exposure ranges from 0%-20% in bear markets or corrections, all the way up to 80%-100% in strong bull markets.
See also: stock market today (updated several times during each trading session)
2. Find the best stocks to buy and view IBD stock listings
Under the Stock Listings tab on Investors.com, go to: Stock Listings
Using exclusive stock ratings and stock listings like the IBD 50 and sector leaders, you can quickly identify stocks that are strongly exhibiting those same characteristics right now. You can also use the IBD stock screener to find stocks that fit your customized criteria.
Which top rated stocks are in or near the buy zone right now?
Simply scroll through the IBD screens to find the top rated stocks in or near a potential buying range. It is a simple, effective and fast way to create your watchlist.
3. Evaluate your stocks and plan your trades with stock checking and IBD charts
What is the most effective way to maximize your profits and minimize risks? Always check a company’s “fundamentals” (eg sales, earnings, products, industry trends) and “technicals” (eg price action, volume, support and resistance in a chart).
that Mix It gives you a huge advantage over investors who are only looking at one or the other.
A stock check gives you pass, neutral, or fail ratings for your most important stock selection criteria. Just enter the indicator to get an instant diagnosis of your stock. (Learn how to diagnose your stocks.)
Is it time to buy, sell or hold?
In addition, before you buy a stock, use the IBD charts to ensure that it is in a suitable buy area. And use the charts to know when is the right time to take your profits and reduce your risks.
See also: Free investment lessons on how to buy stocks | When to sell stocks | How to read stock charts
How to invest: Find the best stocks to buy before They break out
IBD inventory listings help you speed up your search. You’ll also find alerts for stocks that are in or near a potential buy zone in the chart analysis provided for each name in the stock market IBD sector leadersAnd defect 50And IBD Big Cap 20And Underwriting leaders And Stock lights.
Monitor these stock lists and indexes regularly with the Buy Checklist and Sell Checklist as part of your investing routine. Also be sure to check out the IBD Breakout Stock Index, which is updated weekly.
Check these screens regularly is a proven way to help improve your investment results by quickly creating a high-quality, actionable watchlist. Using this simple three-step routine will also help protect your profits and preserve any small losses in weak markets.
Follow Matthew Galgani on Twitter at @tweet.
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