Inline with my last post. I’ve decided to share my top 5 stock picks for short term growth.
I’m only planning on holding onto these stocks for 2-3 month and to capture some gains with their volatility. As usual, full disclosure in my trading strategy so readers can share my strategies, identify my weaknesses, and allow us all to learn and grow together.
All of my day trading strategies are implemented in my ROTH IRA account. I decided on this because:
1. That’s where the majority of my money is saved
2. No tax on capital gains/earnings. All that money is mine!
3. The IRA fund means I can’t withdraw any money until I’m 60; this long horizon sometimes makes it feel like this account only holds play money. Bonus aspect is that since I don’t really have access to this money now, it helps me keep the emotion out of the decision making process…at least so far…
Top 5 Picks for Short Term Investment (9/11/2009):
- STP. Renewable energy is receiving some highly favorable legislation under Obama’s administration. This stock is super volatile, but a classic buy low sell high item. Just watch and be patient.
- FXP. I posted this article last time arguing that China is the first country out of the recession. I don’t think anyone knows for sure if China is priming for another bubble or even if these gains are sustainable, but it’s clear that China has experienced some spectacular gains over the last few months. I’d be a fool not to hop on the bandwagon even if its for the short term. For me this is a week by week play to grab a few quick percentage points.
- CATY. Cathay Bank is a small conservatively run bank in California with additional branches in Asia. They target a wealthy niche clientele in Asian American business. If you followed my last article at all, i’m a firm believe in the high unemployment rate boosting short tem bottom line profits. Solid management with a strong customer base plus the upcoming boost in profit should provide a nice little gain from this stock.
- TAN. What can I say, i’m a huge fan of solar stock plays. If you can’t decide on which company to invest in, why not check out this ETF and collect them all? If the industry goes well, this stock just takes off. Again, just be patietn and watch.
- GE. GE is so big and diversified that it basically follows major index movements. However, I feel much safer investing in GE than investing in any other major stock index because GE has very sound fundamentals. With the Dow moving so unpredictably day to day, GE is a good stock to take advantage of market volatility.
I’ll be monitoring these 5 and posting any big wins or losses. I’m not a financial guru or anything, but these stocks have made some money for me… and hopefully they can work for you as well.
Do you have any favorite short term stock plays? Please share your ideas in some comments below!
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Good stock picks. I’ll be looking into buying some of these.