This story originally appeared on Zacks
Most of us have heard the dictum “the trend is your friend.” And this is undeniably the key to success when it comes to short-term investing or trading. But it isn’t easy to ensure the sustainability of a trend and profit from it.
Often, the direction of a stock’s price movement reverses quickly after taking a position in it, making investors incur a short-term capital loss. So, it’s important to ensure that there are enough factors — such as sound fundamentals, positive earnings estimate revisions, etc. — that could keep the momentum in the stock going.
Our “Recent Price Strength” screen, which is created on a unique short-term trading strategy, could be pretty useful in this regard. This predefined screen makes it really easy to shortlist the stocks that have enough fundamental strength…