If you asked just a handful of so-called ‘experts’ how to find a strong stock, you would probably receive hundreds of answers. Everything from financial data to technical indicators to superstitious mumbo jumbo would be brought up.
Some of them would be useful, most of them would probably make you lose money, and others wouldn’t make any sense at all.
That’s why I love this one, single characteristic that shows me some of the strongest stocks, and it’s coming in handy right now…
Even if you just asked 2 random professionals on Wall Street how to best tell if a stock would go up or down, you could very well get 2 opposing answers.
That’s just how it is in the stock market. People come up with their own ideas about what’s right and wrong, or they are taught a certain thing and never let it go.
They stick with their beliefs about stocks even if they lose money over and over…
I, on the other hand, would much rather make a lot of money than hold on to some outdated stock advice that probably never worked to begin with.
And rather than having to look at dozens of aspects of every stock to decide if it’s worth pursuing, I would much rather find the stocks that share the 1 characteristic of virtually all strong stocks…
It’s simple to spot, and it could help you find the top stocks when the market isn’t at its strongest.
The characteristic of the strongest stocks is that they aren’t dragged down when the overall market has a big drop. Even in a climbing market, pullbacks WILL occur. And those pullbacks give you a chance to see which stocks have this characteristic of true strength.
It’s like the storm that reveals how strong the trunks of all the trees are…
When the market experiences a heavy drop, the storm rolls in. That’s when the weakest stocks fall over, the intermediate stocks bend and wave, and the strongest stocks hold firm in the face of the wind.
As simple as it sounds, it’s an often-overlooked indicator of good stocks. And it’s a characteristic that most of the ‘experts’ on Wall Street don’t seem to ever pay attention to.
