Well, you don’t (sort of). No one can predict what the future would look like. And past performance… you know that cliche.
So, it is not about whether the stock is good trend stock or not but about the quality of underlying business. If you know the company you know what to expect.
So, although there is no way to pick a stock which will be trending in the future, there is a guidance which can help you to at least get an idea if the stock is good or bad.
Just look at the long term chart and you will see the big picture.
Look at the two charts below and you can easily recognize which stock is a trending stock and which is not.
Which is a trending stock?
Well, if you picked one, you may expect the same behavior (or similar) in the future. And unless you are a day trader or swing trader, you should have picked Nike chart in those examples above.
Leave a Reply