How hard is it to find stocks that go up 5% a week?
5% isn't really that big of a change....just 5 cents for every dollar. I see stocks everyday that have increased 5 to 10%. I just want to know how hard is it to pick these stocks.....what are things to look for? I don't want to be a day-trader...rather a week-trader. Say I invest $30,000 in a stock, I would that it goes up 5% in a week, so I can make $1500/week.
Looking at the stock market recently, the only thing I would say is going up is oil company stock. you can hire a stock broker that can advise you, or get some advice from those guys on tv... do some personal research on a few companies and decide on your own whether you think their business will get better or worse over the coming days/weeks/months. as for a stock that goes up 5% in a week... well, it happens, but not often. most big companies consider a growth of 5% over an entire year a good improvement. if you'r looking for such a big change in just a week, it really just comes down to making some educated guesses and then getting lucky Impossible. 5% per week is a 260% rise per year (5 X 52). Very few stocks rocket like that. And no stock rises 260% a year, year after year.
Finding a hot stock that rockets AFTER you buy in is harder than finding a needle in a haystack. You are dreaming or planing on gambling. Very difficult; as they say, past performance is no indicator of future performance.
At best, you can look to companies that you think are undervalued (like Warren Buffet does), and/or look to companies that have earnings releases (good ones!) coming up - keeping in mind that the long-term generally will be far better for profit than the short; you have a lot of volatility in the market right now, it's pretty jittery due to all the credit issues and other mortgage and bank lending issues at the moment; prices fluctuate pretty badly.
If you want guaranteed spread, you could do a carry trade in JPY/EUR or JPY/USD, although that suggests that you have a great deal of cash handy.
Week-by-week trading is just as stressful as day-trading. And just as likely to lose money. Best do research and consult a professional! A 15% annual return is considered excellent. You are looking for 5% per week x 52 weeks or 260% annually. It's a nice goal but far from reality. Besides any stock held less than 6 mos. the profits are subject to income tax, not capital gains tax. A big difference. If it was easy to find stocks that went up 5% per week, everybody would do it. Trying to do it consistently is on a par with winning the lottery. There are many stocks that in any given week might go up 5%. If you are looking for that kind of growth on a regular basis though, you're dreaming.
Picking which stock will go up that much this week is not easy - takes a lot of research, and a lot of luck. Risk and reward walk hand-in-hand down Wall Street. If you are lucky enough to find a stock that goes up 5% in a week, it will probably have a good chance of going down 5% the next week. Day trading is generally not very profitable. You're most likely to do well if you invest for the long term--buy and hold.