Choosing the right leading stock group is the only way to double your account. If you fail to pick the leaders, your portfolio will remain sluggish even in an uptrend. Simply put, when a stock belongs to a sector supported by strong macro factors, its price increase is almost inevitable. It’s like a boat on the water with the wind at its back, it can sail forward effortlessly.
How to identify the leading group:
- Track individual stocks that break their 52-week highs.
- Identify which sectors have the largest number of stocks setting new highs earlier than the overall market.
- In an uptrend, some sectors can rise by several hundred percent, while others lag behind or even decline.