Believe it or not…
Artificial intelligence isn’t the only hot sector in the market…
It often surprises me how many traders overcomplicate the process of finding hot sector stocks.
It doesn’t have to be complicated.
And in celebration of bringing back my swing trade strategy sessions (you can get access to them when you join Daily Income Trader), I’m going to share some ways you can find these hot sectors for yourself…
So let’s dive into three things you can do to find the best hot sectors and stocks…
Recognize What Everyone’s Talking About
If you want to find hot sector stocks, pay attention to what people are talking about.
For instance, right now, artificial intelligence stocks are a hot topic.
It’s all over the news, in press releases, in your workplace — there’s a lot of buzz right now.
Don’t overcomplicate things. Often, hot sectors will be right in front of your face — you’ll know it when you see one…
Remember as day traders we focus on the most obvious stocks, sectors, and patterns.
Staying on top of market news and headlines can help you spot these trends and find actionable trade ideas.
Use Scans to Identify Hot Sectors
It helps me identify stocks that are in play within specific sectors, such as alternative banking stocks, AI, or quantum computing.
Then I filter the results based on volume and price.
The magic happens when I focus on stocks that are within 2% of their 52-week high. These stocks are often on the verge of a breakout, which can attract traders’ attention.
And breakouts to new 52-week highs can spark bigger moves like we’ve seen recently in NVDA…
Take Trading Seriously
Lastly, if you want to succeed in trading, it’s important to take it seriously.
Just because a sector is hot, it doesn’t mean you can buy stocks in that sector and expect to come out as a winner.
The reason why so many people fail in day trading is that they don’t dedicate enough time and effort to learning. And they don’t stay on top of what’s happening in the news and the market.
Finding hot sector stocks doesn’t have to be a complicated process.
The best trade ideas and the hottest sectors are often right in front of you.
But you still need a strategy, pattern, and a trading plan with a risk level.
By observing the world around you, staying informed, and using simple tools like scans and you can uncover profitable trade opportunities.
If you’re committed to staying on top of what’s happening in the market — join me three times a week for my Market Updates.
I’ll show you what I’m watching and the strategies I’ll use to capitalize if and when I see a potential trade.
Have a great day everyone. See you back here tomorrow.
Lead Trainer, StocksToTrade