Fast-moving Stocks 2011

Whether you are a stock trader or simply an investor, you would always want your stocks to rise fast and give you great returns. Every rise in the stock price is cheered and conversely, every fall leads to frustration or depression in the minds of stock market participants. Many people believe that the rise and fall in stock prices is meaningless and totally unpredictable. However, the truth is that with proper analysis, you will be able to predict stock movements after practice. Before we know which are the fast-moving stocks of 2011, let us first acquaint ourselves with the factors that are important for stock price to rise.

Factors Influencing Stock Prices

Earnings
Earnings of companies play a very important role in deciding the rise or fall in stock prices. Good earnings are generally followed by an upward rally, while bad earnings can lead to down grading of a stock and reduced target prices. What matters the most is the net profit of the firm, instead of the gross profit. Often, earnings are compared with those of peer companies to determine efficiency of a firm

Domestic Investor Interest
The fast-moving stocks 2011 are mostly which have a huge domestic investor interest. Stock prices can rise only when good volumes of stocks are traded on a particular counter everyday. One thing which we should know is that investor interest can arise only when the earnings are up to the mark, and people are assured of the future prospects of the company.

Foreign Investor Interest
Foreign investors, in this age of globalization, play a very important role in the growth of companies. Significant amount of foreign investments in select companies can give rise to a positive sentiment which would fuel buying activity on a large-scale.

Cheap Valuations
Cheap valuations in certain stocks can lead to systematic and deliberate value buying by large institutional investors, mutual funds and wealthy stock traders. Stocks are bought at dirt cheap prices by these agencies and people to rake in maximum benefits on an up move. So, if you can understand investor sentiment, then earning good profits in stocks would not be a difficult task.

Expansion Plans
A company announcing rapid expansion plans can show a good risk in its stock prices. Business expansion and increased revenue can lead to re-rating of a company which will automatically increase its market capitalization. So, as an investor, you should keep a tab on company's announcements regarding future acquisitions, mergers and expansions.

Overall Market Sentiment
Overall market sentiment needs to be extremely positive for stocks to rise fast. A stock cannot outperform the market consistently, if the global as well as domestic cues are negative and there are concerns about economic growth. The macro economic picture needs to be inspiring and positive for appreciation in stock prices.

Fast-moving Stocks

Here is a list of some of the fast-moving stocks 2011:

• Amerigroup
• Family Dollar Stores, Inc
• Map Pharmaceuticals
• Winthrop Realty Trust
• LGL group
• YRC Worldwide
• Arena Pharmaceuticals Inc

Some Reputed Fast-moving Stocks

• McDonald's
• Johnson & Johnson
• Coca-Cola
• Verizon Communications
• ArcelorMittal

The following are the points to consider before buying fast-moving stocks:

• Avoid investment at higher levels even though business prospects are good. This is because valuations at this point are expensive
• Buy in parts, to reduce your average buying cost
• Have stop losses close to your buying price; mostly at critical support points
• Consider fundamentals also, apart from technical analysis, to pick the right stocks

This was all about the fast-moving stocks 2011. You can always consult a stock market specialist to get some useful tips regarding best stocks in 2011. Though there are many fast-moving penny stocks, you should avoid the temptation to trade them as far as possible. So, take the right decisions and emerge victorious in the markets. Good luck!

DISCLAIMER: This article is just for reference purposes and does not recommend any stock market transactions.