What investors need to know to beat the market
During trading sessions, investors – and especially traders – want to be where the action is. The problem is scanning a list of stocks and mutual funds won’t point them in the right direction… unless they’re looking for the biggest stock winners. This list of popular stocks is an excellent watchlist of the best individual stocks of the day, all of which deserve the undivided attention of any aspiring broker, trader, or private investor.
- What are the biggest stock gainers?
- Why are Percent Gainers Important?
- How To Find Stock Gainers
- Risks of Equity Gainers
- How You Can Benefit From Percent Gainers
Here’s Why the Biggest Equity Gains Matter
The largest stock in terms of price is not necessarily the best investment, especially for traders who can use market data to make their moves.
Instead, those who trade securities will want to look at data as percentage change and trading volume, because percentage movement counts. The percentage change in terms of a stock price from one period to another is a great financial tool for seeing which stocks are hot – and which are losers.
Percent gainers are the stocks that see an upward movement in terms of their percentage change. Please note that percentage gainer lists do not consider other data such as market cap or trading volume.
Percentage gainers can be tagged to a specific stock index, such as the Dow Jones or NASDAQ or to the market in general. Investors can also customize a platform or stock screener to give them a list of stocks undergoing the greatest percentage change, which is especially helpful when taking current events into account to make a decision.
Percentage gainers are important stocks to keep an eye on
Percent gainers are a good indicator of a stock’s trajectory, be it one of many stocks under $1 or a long-standing blue chip behemoth. An understanding of percentage gainers is one of the few financial instruments that can also be applied to commodities and futures. Investors can track percentage gains for virtually any asset class, including currencies.
When it comes to stocks, a percentage gain is an easy way to measure the market sentiment around a security, its direction and value in terms of trading. The bigger the move, the more conviction in the market.
Anyway, identifying percentage gainers is a form of technical analysis that traders – and especially day traders – use to find stocks with significant price movements.
How To Find Stock Gainers For Profit?
The formula for identifying the percentage gain on a stock is very simple. All you need to do is take the stock’s daily high, subtract the stock’s daily low, and divide it by the closing price. The stock with a positive percentage is considered a percentage gainer. A stock with a negative percentage is a percentage loser.
You don’t have to limit your research to just one day. The same formula can be applied to any time period, be that a month, a year, or five years (or more). You would simply take the highest point of the pricing during that period, subtract the lowest and divide it by the price at the end of that period. For example, if you want to see which of the most active stocks really wins the most in the past six months, you can adjust the formula according to that period.
- When an investor goes to a stock screening tool like the one on MarketBeat.com, they can search for the percentage gainers and even set up custom stock screens.
Since it involves traders identifying percentage gainers, some traders will pay close attention to pre-market and after-hours trading. Others will pay more attention to one group than another. Either way, traders worry about looking for stocks that meet their criteria for both percentage profit and trading volume during a very defined window when they want to execute their trade.
- Percentage gainers are good trading targets because when a stock moves forward, there are more investors interested in buying than selling.
Investors can use a stock screener to sort win rates by the exchange they are listed on, by market capitalization, by price, and by trading volume. When selecting securities to trade using percentage gainer as a key indicator, it is important to compare the volume of that particular security over a week or perhaps even several months. A popular metric for investors is to look for a security that has traded twice its daily volume in the past 50 days.
There are risks to trading stock earnings
There are no guarantees of investing and each prospectus reminds retail investors that past performance is no guarantee of future performance. A humorously illuminating comment on effects performance comes from Mark Twain, who famously famously said, “History doesn’t repeat itself, but it often rhymes.”
Sometimes stocks and futures will show significant movements after the close of a trading day. Pre-market trading is defined as trading that occurs between 4 a.m. and 9:30 a.m. Eastern Standard Time (EST). After-hours trading takes place between 4 p.m. and 8 p.m. EST.
Many economic reports (also called economic indicators) are released before the market opens. The reaction to these reports can cause significant price movements in stocks and futures. The same goes for a company’s earnings reports which are typically issued before the market opens or immediately after it closes. And, of course, there are always news events, including natural disasters, that can significantly affect the price movement of certain stocks. One of the biggest risks investors can take in terms of analyzing percentage gains is planning too tight a time frame and ignoring aftermarket activities.
Another limitation of percentage gainers is that while they provide a clear data point, the data requires context. Simply understanding how much a stock moves doesn’t tell an investor why that stock moves. This is why investors should continue to use different forms of fundamental analysis and technical analysis when looking at percentage gainers.
How You Can Benefit From Percent Gainers
Despite the obvious limitations, it is possible to take advantage of percentage gain indications. While the word “volatility” can sometimes be seen as negative, investors understand that volatility is necessary for profitable trading. Percentage gainers are a measure of volatility. Many active traders even butter their proverbial bread through the most volatile stocksand one indicator they rely on is the percentage, which tells them the winners or losers (which may turn out to be winners in terms of profit).
Stocks with a high percentage of gains or losers are only really important to traders if those stocks are associated with a volume that allows easy entry and exit of trades and at a price that facilitates profits. Many stocks, some of which are penny stocks, can show huge percentage gains, but they trade with very small volume, meaning even a large percentage gain won’t help.
A common standard for volume is to look for stocks trading at 2x their average daily volume over the past 50 trading days. This is a good indicator that the percentage gain really presents a lucrative opportunity outside of the price movement that has already been realized.
For securities that typically have higher liquidity, investors may choose to look for trading volume at 3x or 4x their moving average. It is important that whatever formula is used, it is used consistently. Volume, even within an industry, can vary widely between two stocks.
The top gains in the stock market also have volume
Traders want to know where the action is taking place because the largest price movement occurs where the market is most focused.
A percentage gainer is a stock that has risen the most from its opening price (or the price at the start of your selected time frame). Percentage gainers (also known as avorders) provide important data for traders looking to take advantage of the price action of volatile stocks and futures.
Any stock with a positive percentage is considered a percentage gainer. On each trading day, stock trackers will post real-time updates of percentage gains or losers, which can also be referred to as precursors or precursors.
- Since the market is not static, percentage gainers keep changing even in after-hours or pre-market trading.
Like many other forms of technical analysis, performance gains must be evaluated along with other market data, such as trading volume to determine the securities that have the best trading opportunities. A stock with a stock price of $20 can move a large percentage on less volume than a stock that trades at $100. However, a trader looking to quickly enter and exit a trade may find it difficult to trade at the price he or she wants. wants if the stock is trading at low volume, which in turn implies low demand for the stock.
While often thought of in terms of stocks, investors can find performance gains across virtually any asset class, including commodities and futures. Many stock screening tools allow investors to be very accurate, even looking at winners by sector or by volume. In this way, traders can tailor the data to the criteria they find most beneficial.
- 1 What investors need to know to beat the market
- 2 Here’s Why the Biggest Equity Gains Matter
- 3 Percentage gainers are important stocks to keep an eye on
- 4 How To Find Stock Gainers For Profit?
- 5 There are risks to trading stock earnings
- 6 How You Can Benefit From Percent Gainers
- 7 The top gains in the stock market also have volume