We are almost half way 2014 and all the market signals suggest that tech stocks are poised to soar in the second half of the year. Investors who are ready to ride on this new tech wave and position their portfolio accordingly, they will be able to grab some of the biggest profits in history.
But, how do you spot these tech hotshots?
In this article, we are revealing the four telltale signs to help you identify the stocks worth putting your money on. By applying them into your trading strategy, you will be able to tap into the most exciting market trends and capitalize on the companies’ best positioned to bring you significant profit.
So, let’s look at them…
#1. Great leadership
To attain the kind of life-changing profits you dream of, it is not enough to simply spot an attractive company in a hot tech sector. You have to capitalise on the truly commendable industry leaders, the enterprises that are changing the rules in biotechnology, computing, telecommunications, aerospace, industrial materials and other front line high-tech sectors.
These groundbreaking companies generate markets where none existed, overtake prevailing technologies and develop products that consumers never even imagined of, but cannot live without. Ventures this revolutionary and versatile share a common attribute; they all have great leaders behind their wheel.
Pinpointing such exemplary leaders takes effort. You have to examine their business plans, competitive strategies and trend-making initiatives. These executives have the golden touch to help companies broaden their offerings and grow internally, invest in technology breakthroughs, make strategic acquisitions, build fanatic audiences and grow their revenue by millions and millions of dollars in a surprisingly short period of time. Simply put, they are the guys who you could trust with your hard-earned money.
#2. Rock-solid fundamentals
To create real profits, you have to ignore the investment hype and separate the wheat from the chaff. You should know that the views you read in the mainstream financial press and websites are the siren song of Wall Street that will take you on the road to investment destruction. The sad thing is that most traders end up succumbing, which is exactly the desired effect of Wall Street.
If you really want to succeed in financial markets, you need to be able to think for yourself and separate the signals from the noise. You have to focus on the signals that potential winners send out and look for companies with strong fundamentals. There are three profitability indicator ratios that will enable you to separate the prospects from the suspects in the stock market:
#3. Consistent growth rates
The one thing to keep in mind that will enable you double your money is find companies that can deliver superior growth on a consistent basis. It is a rule of thumb that organisations that have the strongest growth rates and reinvestment strategies, almost always offer the highest stock returns.
You have to look for companies that their profits grow consistently at an average annual rate of 15-20% or more and offer safety of capital. When earnings grow at such high rates, a stock is on track to double in between two to three years and keep rising in the months and years to come.
In order to accumulate market-beating profits, you have to spot companies with strong financial results that invest in future growth, by taking a significant percentage of their balance-sheet cash and redeploy it back into R&D to create new products, higher profits and bigger shareholder returns.
#4. Solutions to issues affecting millions
Put in your radar stocks in sizzling tech sectors that offer the best possibilities for life-changing achievements. If you want to amass substantial profit, you have to be able to identify the newly emergent, unstoppable trends that have “big money” written all over them, such as mobile TV, big data, cloud computing and synthetic vaccines.
Find the next big thing that could solve a wide range of problems that can affect the lives of millions around the world. Such revolutions might be technologies using DNA for curing diseases, products screening for several conditions at once and delivering test results in a matter of minutes, or tools sifting through billions of daily online transactions to help combat cyber-fraud.
Taken together, these four signs will help you detect the tech stock gems about to fatten your investment portfolio over the next years and make you a much savvier trader. Take advantage of the ongoing, accelerating explosion in technology and invest in the best stocks to make you a fortune.
We celebrate 110 years of the settling of the Republic in Portugal and we raise our flag in honor of all those who made it possible
20th of August it is the day of an official state holiday of Hungary called St. Stephen's Day. It is also known as Foundation Day and Constitution Day. By some of the Hungarians St. Stephen's...
The mother that we all admire, the mother who faced so many trials while on Earth now sits in heaven, looking down on us and protecting us. Today we celebrate this mother, the Virgin Mary, and remember...
Risk Warning: Trading Forex and CFDs on margin carries a high level of risk and may not be suitable for all investors. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Prior to trading, you should take into consideration your level of experience and financial situation. TeleTrade strives to provide you with all the necessary information and protective measures, but, if the risks seem still unclear to you, please seek independent advice.
© 2011-2020 TeleTrade-DJ International Consulting Ltd
TeleTrade-DJ International Consulting Ltd is registered as a Cyprus Investment Firm (CIF) under registration number HE272810 and is licensed by the Cyprus Securities and Exchange Commission (CySEC) under license number 158/11.
The company operates in accordance with Markets in Financial Instruments Directive (MiFID).
The content on this website is for information purposes only. All the services and information provided have been obtained from sources deemed to be reliable. TeleTrade-DJ International Consulting Ltd ("TeleTrade") and/or any third-party information providers provide the services and information without warranty of any kind. By using this information and services you agree that under no circumstances shall TeleTrade have any liability to any person or entity for any loss or damage in whole or part caused by reliance on such information and services.
TeleTrade cooperates exclusively with regulated financial institutions for the safekeeping of clients' funds. Please see the entire list of banks and payment service providers entrusted with the handling of clients' funds.
TeleTrade-DJ International Consulting Ltd currently provides its services on a cross-border basis, within EEA states (except Belgium) under the MiFID passporting regime, and in selected 3rd countries. TeleTrade does not provide its services to residents or nationals of the USA.