Picking tech stocks isn’t as difficult as it sounds, but my Nova-X Report subscribers often ask for specific tips or strategies they can use to improve their odds. It’s true that the tech industry is constantly changing and evolving, but that’s actually good news for people who invest in tech stocks.
A volatile sector brings volatile price action. In other words, you see bigger dips and spikes on tech stock charts than you do in many other sectors. There’s also more average daily volume because everyone wants a piece of the tech industry pie. If you’re thinking of investing in tech stocks, paying attention to the volatility and volume will serve you well.
But since we’re talking specifics, let’s look at what tech stocks are and how you can better profit from them.
What Are Tech Stocks?
Tech stocks are stocks of companies that create, distribute, or research and develop products and services related to technology. If you guessed that this is a huge sector, you’re right.
When many people think of tech stocks, they picture Apple and Alphabet. But these aren’t the only types of companies to consider. What about the companies that supply parts to Apple or the companies that help deliver the internet to your home so you can Google a topic?
Because it’s so broad, the tech sector encompasses many types of brands, including those involved in selling goods or providing services. There are microcap stocks that might trade for $1 per share and blue chip stocks that hit hundreds of dollars per share.
Consequently, there are a lot of different ways in which you can approach tech stocks.
Should You Invest in the Major Tech Companies?
Big tech stocks constitute an excellent investment if you’re in it for the long haul. Their prices don’t fluctuate nearly as rapidly as those of companies with smaller market caps. You might, for instance, fill your retirement account with large positions in major tech stocks, then day trade micro-cap stocks for income.
It’s completely up to you. Some investors don’t like bothering with the big tech stocks because they’re not as exciting. They prefer the rush of day trading and swing trading, both of which lead to results in much shorter time spans.
Do Long- or Short-Term Trades Work Best With Tech Stocks?
Again, you should approach tech stocks based on price action, market sentiment, and other factors that influence how quickly the prices will move, how many players are involved, and how much you’ll need to invest. Generally speaking, the more you pay per share of a tech stock, the longer you should hold it.
This is largely because we’re talking about well-established companies. Their stock prices might dip and spike occasionally, but at the macro level, they only increase by relatively little money in the short term.
Smaller, speculative stocks are far more likely to swing against you quickly. That’s why you might want to dip buy a micro-cap stock, then sell quickly when it bounces to take quick gains. Repeating that move dozens of times can help you produce significant income from tech stocks.
What Are the Best Ways to Pick Profitable Tech Stocks?
Let’s get to the specific tips you can use to choose profitable tech stocks. Use these strategies by yourself or as part of what you learn from Nova-X Report.
Day Trade Emerging Tech Stocks
The smaller the tech stock, the less likely it is to survive. Think of all the small tech companies that emerge every month. They often lack capital, IP, and other assets, which means they often fail. You don’t want to stay too long with those tech stocks.
Use them for day trading to build up your income from the stock market. A day trade simply means that you buy and sell the same security within the same market period. You might buy a stock at 10:30 a.m. and sell at 1:15 p.m.
Hold Long-Term Investments in the Most Powerful Tech Stocks
A lot of people benefit greatly from holding big tech stocks for years — or even decades. These are great for your retirement portfolio because they’ll allow you to enjoy comfort and luxury during your golden years.
You can either pay an investment banker to manage these stocks or you can do it yourself. I recommend the latter. The more involved you are with your own investments, the more rewards you’ll enjoy.
Consider Dividends as Well as Stock Prices
Keep in mind that many of the large tech stocks pay out dividends. You can receive quarterly checks just for being an investor, which will add to your nest egg. While day trading for income is a great way to take advantage of the stock market, so is accruing dividend payments from big tech stock holdings.
Investigate the Clients of Major Tech Companies
A great way to find the most investable tech stocks is to look at major companies’ suppliers and vendors. What companies are in those businesses’ employ? You’ll know they’re likely pretty stable because they’ve secured accounts with major tech firms.
Investing in tech stocks isn’t hard, but it requires diligent research and dedication. That is unless you subscribe to Nova-X Report. I help my subscribers secure huge payouts off single plays by deploying my experience for their benefit.
Sign up for Nova-X Report today to avail yourself of my experience in the tech stocks world. You won’t be disappointed.