STARS VS. METEORS: A MODEL FOR SPOTTING TOMORROW'S HOT STOCKS

摘要

In general, there are two ways to put your speculative resources to work: Investing or trading. Each has the same goal - superior returns with as little risk as possible -but each is an entirely different approach. Investors look to buy shares in companies that display excellent fundamentals, such as earnings and growth. Traders are quick to point out that excellent fundamentals are no indicator of long-term success and, that while growth and earnings are good starting points, price action is the ultimate barometer of success. Ultimately, in trading, price movement determines share value, not fundamentals. After all, what good is it if a company has great earnings and sales growth but the stock never increases in value?