Self Help

You can invest in a great company and still see its stock go nowhere. Why? Because what makes the stock go up is demand - there need to be more buyers than sellers of the stock. If you pick a stock for all the right reasons and the market notices the stock as well, that attention will cause the stock price to climb. The things to watch for include the following:

Institutional buying: Are mutual funds and pension plans buying up the stock you’re looking at? If so, this type of buying power will exert tremendous upward pressure on the stock’s price. Some resources and publications track institutional buying and how that will affect any particular stock.

Analysts’ attention: Are analysts talking about the stock on the financial shows? As much as you should be skeptical about an analyst’s recommendation, it offers some positive reinforcement for your stock. Don’t ever buy a stock solely on the basis of an analyst’s recommendation.

Newsletter recommendations: Newsletters are usually published by independent researchers. If influential newsletters are touting your choice, that praise is also good for your stock.