How to Find the Best Momentum Stocks

Want to ride the hot hand of the market? Finding the best momentum stocks can sometimes pay off for nimble investors. Here's how to do it.

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There's an old saying about investing that the best way to make money is to buy low and sell high. However, there's also a less popular way to cash in on Wall Street via finding the best momentum stocks.

Simply put: Buy high and sell even higher.

It's not always true that cheap stocks are a bargain. Some companies are trading at low levels for good reason and are likely to see further declines. In a similar respect, some high-flying momentum stocks are pricey for good reason and are likely to be in store for continued and sustained gains.

This latter example is momentum stock investing at its core.

Jeff Reeves
Contributing Writer,

Jeff Reeves writes about equity markets and exchange-traded funds for Kiplinger. A veteran journalist with extensive capital markets experience, Jeff has written about Wall Street and investing since 2008. His work has appeared in numerous respected finance outlets, including CNBC, the Fox Business Network, the Wall Street Journal digital network, USA Today and CNN Money.