How to find good stock market catalysts?
Asked 3 years ago
Guys, my portfolio is bleeding. I need help here, where do you guys get your analytical/business research from? Who do you follow? Thanks!
Andrew Moran
Wednesday, August 04, 2021
First, there are two types of catalysts for stocks: hard and soft. The former is directly related to the stock, while the latter maintains more of indirect correlation to the stock.
Now, here is a brief list of some catalysts that would generally move a share price higher or lower:
Analyst updates and downgrades, although this is having a reduced impact on stocks considering enormous volumes and signals.
Breaking news, such as the coronavirus pandemic, a violent conflict in the Middle East, or tax policies.
Company news, including a new chief executive officer, a product launch, costly legal strife that would hurt the brand, or a deal/merger with a different business.
Corporate earnings reports that are released every quarter.
Government regulations, either new mechanisms that could raise overhead or the eliminate of prior rules that would make it easier to do business.
Ultimately, it is important to spot trends as early as possible. For example, if you paid attention to developments in Peru, intensifying demand in the electric vehicle market, and industry reports about supply imbalances, you could have purchased copper stocks and contracts before the bull run.
The earlier you get in on the market, the better chance you can to profit and avoid chasing stocks.
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