The more investors want a company s stock, the more the stock price rises. Value Strategy . Compare it to similar companies. Earnings growth potential is important to consider 4. Contrarian Strategy .
Contrarians go against the thinking of the crowd.
They buy stocks that have been sold off recently or have fallen out of favor. Since the stock s price has dropped so low there is only one direction left to go up. Also if a stock they own has seen a sharp increase in price the contrarian will sell. Stock Strategy - Some stocks have history of rapid price growth. They are likely to be newer companies or in rapidly growing sectors of the economy.