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One rookie way to quickly blow up a trading account is to try to call rebounds on lackluster stocks.
Thatâs why when it comes to going long on his trades, especially in his [IPO Payday service](, Ben Sturgill favors growth stocks.
His recent trade in Zoom (ZM) was a perfect example.
It handed him 100% gains on the first half, 150% on the next quarter, 450% on an additional piece, and a grand slam 600%+ on the remainder.*
Now, [explosive IPO trades like this]( donât happen all the time.
And he takes a loss from time to time too.
But looking for [stocks with a strong pattern of growth]( is a key takeaway.
Whatâs a growth stock?
Itâs any stock that we can expect to grow at a much faster rate than whatâs average for the market.
Theyâre stocks where earnings get reinvested in the company rather than doled out in the form of dividends.
When Ben looks to identify these [fast movers like ZM](, he looks at a combination of factorsâ¦
Both fundamental and technical.
On the fundamental side, performance is critical.
Obviously we all know ZM caught a bounce because of the remote work and life possibilities it has provided during the pandemic.
Yet Zoom nevertheless crushed Wall Streetâs earnings expectations.
Total sales increased by 169% from the previous year and free cash flow lept to $251.7 million from $15.3 million in the same time.
On the technical side, we have to look at patterns.
How is the stock handling support and resistance?
In the case of ZM, looking at moving averages was critical.
The last several times ZM had hit the 50 day moving average, it had moved up from there.
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Hereâs a closer look...
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If you missed Benâs win in ZM, [check out the setup that heâs eying right now in Pinterest (PINS).](
PINS is another growth thatâs being benefited by the pandemic right now, evidenced by a 39% increase in monthly users to 416 million.
And even after seeing a huge pop after crushing earnings expectations, the growth still holds.
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Ben even saw some dark pool activity in the stock come through on his scanner, indicating that some big players on Wall Street have an interest.
If you want to see how Ben potentially trades PINSâ as well as all the other stocks on his watchlistâ [check out IPO Payday.](
Ben even sat down with Jeff Bishop and Jason Bond to explain everything about the service.
[Join them for this exciting IPO trading event here.](
[Watch Ben unveil his full IPO strategy.](
[I'm an image]
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To Your Success,
The RagingBull.com Team
*Past performance is not necessarily indicative of future trading results, and the results presented in this communication is not necessarily indicative of future results, and the results presented in this communication are not typical. Investing in securities is speculative and carries a high degree of risk; you may lose some or all of the money that is invested.
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