In the trading world, there’s a constant rotation of hot sectors. They catch fire and then they eventually flame out…
Each sector’s time in the sun can last a few days to a few months.
I’ve definitely found the latest one, and I’ve shared my watchlist with StocksToTrade Advisory members.
And I first alerted my Daily Income Trader members to this new group of stocks last week. Since then, many have taken off.
Don’t worry though, I think there’s plenty more price action to come…
I’m excited to get everybody in on it and show you how to play it.
Quantum Computing is hot right now.
Take a look at some of the names I talked about last week with my DIT and STT DA subscribers:
Quantum SI Incorporated (NASDAQ: QSI)
QSI 5-Day, 5-Minute Candles Chart; SteadyTrade
And then there was Quantum Computing Inc. (NASDAQ: QUBT)…I know, what a colorful name…
Quantum Computing Inc. (NASDAQ: QUBT)
QUBT 5-Day, 5-Minute Candles Chart; SteadyTrade
But this is only the beginning…
Especially after this Wall Street Journal headline from last Friday:
Sharing news with a giant like Amazon has only fueled this sector’s fire.
So, if you’re disappointed that you missed out, don’t be. The pullbacks on the two stocks above and others are only temporary. I see them as a chance to get in on a future price surge.
After all this talk about this sector’s crazy potential, what is quantum computing anyway?
Table of Contents
Quantum Computing: The Next Frontier
Quantum computing is one of those rare technological breakthroughs that has the potential to redefine industries as we know them.
At its core, quantum computing is about solving problems that would take traditional computers millions of years to tackle.
By harnessing the power of quantum bits (called qubits), these machines can process massive datasets, optimize complex systems, and revolutionize industries like drug discovery and artificial intelligence.
Quantum computing could basically usher in a new technological age.
The Leaders in Quantum Computing
IBM (NYSE: IBM):
IBM has been at the forefront of quantum computing for years. Their IBM Quantum initiative is one of the most robust in the industry, with their quantum systems available on the cloud and a growing community of developers.
Known for its strength in R&D and great fundamentals, IBM is a low-risk bet for long-term investors.
Alphabet Inc. (NASDAQ: GOOGL):
Google claimed “quantum supremacy” in 2019 after its Sycamore quantum processor solved a problem in minutes that would take classical supercomputers thousands of years.
The company continues to invest heavily in its Quantum AI lab, aiming to develop practical applications for finance, logistics, and energy optimization.
Microsoft Corp (NASDAQ: MSFT):
Instead of focusing solely on hardware, MSFT is developing a complete quantum ecosystem through its cloud-based platform, Azure Quantum.
It’s like a “quantum app store” for enterprises.
Rigetti Computing (NASDAQ: RGTI):
Unlike the tech giants listed above, Rigetti is a pure-play quantum computing company.
They’ve developed their own quantum computers and are pushing hard for commercialization.
RGTI is a great swing trade opportunity and one that’s on my watchlist.
The Risks
The obvious risk is that quantum computing is still in its early days, translating into stock volatility.
It’s reminiscent of the early dot-com days when there was massive potential but a lot of hype that often overstated reality.
How to Play Quantum Computing Stocks
Traders should focus on companies with a clear roadmap for commercialization.
IBM and Microsoft have the resources and infrastructure to weather slow adoption, making them better long-term buy-and-hold investments.
Smaller players like Rigetti are more speculative but offer higher price upside if quantum computing really starts generating revenue.
And if you’re new to trading tech stocks, don’t feel like you need to dive headfirst into quantum computing stocks…
Start small, build your knowledge, and keep an eye on the technicals. Look for strong support levels and volume trends.
To invest in and trade these stocks, especially the lower-priced names, you need a great trading platform that provides technical indicators, charting, stock screening, and more.
My top pick is StocksToTrade and I use it every day.
It covers all the bases and also has a selection of add-on alert services, so you can stay ahead of the curve.
Grab your 14-day StocksToTrade trial today — it’s only $7!
Final Thoughts
While it’s still in the early innings, the advancements in quantum computing we’re seeing today are laying the groundwork for tomorrow’s breakthroughs.
Traders and investors should stay ahead of the curve, identify the companies driving the innovation, and position themselves to benefit from the long-term growth of this transformative industry.
As you should when approaching any strategy or sector, do your research, stay focused, and remember that big opportunities often come with big risks—so have a risk management plan in place—but they also offer the potential for big rewards.
And to learn more trading strategies, tips and tricks, join our StocksToTrade community.
We have tons of free live webinars that run all day and teach trading strategies, provide info on our Oracle system, and offer other valuable training.
Click here to register for a session.
And for additional trading mentorship, stock ideas, and more, join my StocksToTrade Advisory service.
Every STT Advisory member gets a monthly newsletter with a list of my top picks, three weekly videos with my watchlists, bonus reports, and more.
Sign up for StocksToTrade Advisory right here!
Have a great day, everyone. See you back here tomorrow.
Tim Bohen
Lead Trainer, StocksToTrade