Yet, if a company has only 2 or 3 million shares outstanding, a reasonable amount of buying can push the price up rapidly because of the small available supply. If you are choosing between two stocks to buy, one with 60 million shares outstanding and one with 10 million shares, with all other factors equal, the smaller one will usually be the bigger mover. Stocks that have a large percentage owned by top management are generally better prospects. Foolish stock splits can hurt a stock's performance. Watch out for companies that split their stock 2 or 3 times in just a year or two.
People often buy stocks they're comfortable and familiar with, like an old pair of shoes.
Usually these are lagging slowpokes rather than leaping leaders. It is really important to look at how your stock is performing in relation to the overall market. Avoid laggard stocks and look for genuine leaders. It takes big demand to move a stock significantly higher in price. Institutional buyers are the most powerful source.