When trying to find the perfect tech stock to make the perfect move, most people are simply guessing. They may listen to some of the noise surrounding the tech world about the next big winner, but all that noise is generally garbage.
Instead, we should be looking at legitimate indicators that can give us insight into where a stock, or the entire market, may be headed.
Here is one such secret of trading tech stocks that will put you miles ahead of the average investor…
Forget the average investor; most professionals and so-called “experts” never take a look at this important indicator.
And it’s so vital that I never make a trade or investment without first inspecting it. The trick to getting off on the right foot when looking to make a tech stock trade is to look at the state of the tech stock sector.
It’s like taking a step back and looking over an entire painting before making a pivotal brush stroke.
Simply look at how the technology sector stacks up against the other sectors. Doing this will help us trust our buy or sell decisions if they are in line with the sector as a whole.
If they don’t line up, you can’t trust the trade, so be ready to bail.
And trust is hard to come by these days. Take our own government as an example. Congress feels the need to file a lawsuit against President Obama because they cannot trust his judgment and methods of bypassing the checks and balances system.
But we can avoid such a relationship with our portfolio by taking a couple minutes before we try to find stocks to trade and look at where the technology sector stacks up against the market.
If the sector is strong, we can feel confident about making a buy. If the sector is one of the bottom two or three, we may need to watch our positions closely because a weak sector means that most stocks in the sector are weak at the moment.
This technique is fully explained in our Stock Code Breaker course, which can also show you a tested strategy to become an expert trader and investor. It can make Wall Street your playground.