Buy Momentum Stocks – Invest in the Best Momentum Stocks Today!

Fact Checked by Gary McFarlane

Momentum investing is essentially this strategy that allows you to maximize long-term profits through riding stocks while they are on a good run, with the goal of selling them once they have had a bad stretch. They present an excellent opportunity through which investors can buy momentum stocks while they are on a specific upwards trend, with the goal of riding that trend and receiving a profit.

This guide will analyze the best momentum stocks to buy now and show you how to complete your purchase with a 0% commission broker in less than five minutes. Let’s dive in.

#1 Broker to Buy Momentum Stocks – eToro

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How to Buy Momentum Stocks – A Quick Guide For 2021

Suppose you are curious about learning exactly how to buy momentum stocks from home. In that case, this guide will show you everything you need to know when it comes to doing this task with eToro, an online brokerage regulated by SEC FCA and other financial bodies.

At eToro, you are only required to meet a $50 minimum investment when it comes to buying momentum stocks, and you can complete this entire process without really paying a cent in commission.

  • Step 1: Open an Account with eToro – You will need to make an account with eToro on their official website and let them know who exactly you are first.
  • Step 2: Upload Your ID – To get your account verified at an instant, you will be required to upload a copy of your government-issued I.D. and a proof of address issued within the prior three months.
  • Step 3: Deposit Funds – Once you have verified your account, you can deposit some funds into eToro through a credit card, debit card, bank transfer, online banking, or even PayPal. Other e-wallets and local payment methods are supported too. The minimum deposit is just $50.
  • Step 4: Search for a Momentum Stock – You can search up for momentum stocks that you want to invest in and click on the “Trade Button.”
  • Step 5: Buy Momentum Stocks – In the “Amount” box, you will need to enter your stake, which is a minimum of $50 on eToro. eToro also supports fractional investments, which means that you won’t need to buy a full stock. To confirm your momentum stock investment, all you have to do is click on the “Open Trade” button.

You will find your newly purchased momentum stocks in your eToro portfolio. You can check the value of these investments at any point in time, and if the market goes in your favor, cash out.

Best Momentum Stocks to Buy Now – List of the Best Momentum Stocks

If you’re searching for the best momentum stocks to buy right now – we like the look of the following companies.

  1. Devon Energy Corp – Energy Sector
  2. Fortinet Inc – Information Technology Sector
  3. Moderna Inc – Health Care Sector
  4. Marathon Oil Corp – Energy Sector
  5. NVIDIA Corp – Information Technology Sector

We explain why the above five momentum stocks caught our attention throughout this article.

How to buy Momentum Stocks – Choose a Broker

Suppose you want to buy momentum stocks in the safest possible way. In that case, you need to ensure that you choose an online brokerage with solid popularity, well-established, and regulated. You need to also consider the fees, commissions, minimum investment requirements, supported payment methods, and even the customer service.

We have found that the best momentum stocks can be purchased from the brokers listed here in a safe as well as affordable way.

  • eToro – Overall Best Place to Buy Momentum Stocks 
  • Capital.com – Trade Momentum Stocks at 0% Commission

What are Momentum Stocks? 

Investing in momentum stocks is a strategy that involves you picking a time frame to measure and assessing all of the stocks that you owned throughout that time. You are essentially aiming to capitalize on the continuance of existing trends within the market. 

The main goal here is to work with the volatility by finding buying opportunities within the short-term uptrends and then selling them when the securities start to lose their momentum.

Best Momentum Stocks to Buy Now – Full Analysis

Before you start buying, you need to perform lots of research to find the best momentum stocks for your portfolio. If you require guidance, below, we have reviewed some of the most attractive stocks in this marketplace.

Devon Energy Corp – Energy

Devon Energy Corp is a leading independent oil and natural gas exploration and production company that has operations focused onshore in the United States. Devon Energy Corp was founded by John and Larry Nichols in 1971.

The main reason why Devon Energy Corp is selected is due to the fact that they are trading at a price of $42.70 and have given investors a 12-month return of 194.71%.

Fortinet Inc – Information Technology

Fortinet Inc Is an American multinational corporation with its headquarters in Sunnyvale, California. It delivers high-performance network security solutions that protect networks, users, and data from ever-evolving threats. They have a broad portfolio of solutions and centralized management, enabling security consolidation and delivering a simplified end-to-end security infrastructure.

The main reason why Fortinet Inc is selected is due to the fact that they are trading at a price of $327.39 and have given investors a 12-month return of 181.00%.

Moderna Inc – Health Care

Moderna Inc is a pharmaceutical and biotechnology company that is based in Cambridge, Massachusetts. They specifically specialize in mRNA medicines for a wide range of diseases and conditions. These vaccines use a copy of a molecule called messenger RNA, which produces an immune response. Their only commercial product thus far is the Moderna COVID-19 vaccine.

The main reason why Moderna Inc is selected is due to the fact that they are trading at a price of $ $329.63 and have given investors a 12-month return of 177.38%.

Marathon Oil Corp – Energy

Marathon Oil Corp is an independent exploration and production company. They are focused on four of the most competitive resource plays in the U.S. and became an independent E&P company on July 1, 2021. They are based in Houston, Texas.

The main reason why Marathon Oil Corp is selected is due to the fact that they are trading at a price of $ $15.70 and have given investors a 12-month return of 160.93%.

NVIDIA Corp – Information Technology

NVIDIA Corp is a company that designs graphics processing units for both the professional markets as well as the gaming markets. NVIDIA also designs system-on-a-chip units for both mobile computing as well as the automotive market.

The main reason why NVIDIA Corp is selected is due to the fact that they are trading at a price of $ $315.03 and have given investors a 12-month return of 152.16%.

Investing vs. Trading Momentum Stocks

There are several ways through which you can buy as well as sell momentum stocks. This is often a choice between a long-term, buy-and-hold strategy or a short-term trading system.

Picking the right option is crucial before you proceed with buying momentum stocks.

Invest in Momentum Stocks

If you are a beginner when it comes to the online trading place, you might be best off deploying the buy-and-hold investment strategy when buying momentum stocks.

What this means is that you can invest in the momentum company by buying and owning its shares. This also means that you will become a stakeholder in the company and be entitled to dividends if applicable. Due to the fact that you will be a long-term investor, you will need to keep hold of your momentum stocks for at least a 12-month period.

That said, a period of more than five years is typically suggested, as this allows you to ride out any short-term market downfalls. 

Trade Momentum Stocks

If you are a day trader or a swing trader that enjoys buying and selling trades on a short-term basis, then you might be better off trading airline stocks instead. What this means is that you will essentially look for opportunities, which will allow you to make a quick profit, typically within the course of a couple of hours, days, or at the most, weeks.

One of the easiest ways to trade momentum stocks is through a low-cost broker that offers contracts-for-differences (CFDs). This will essentially allow you access and exposure to the stocks without taking full ownership over them, which means that you can even apply leverage to your position. 

Additionally, CFDs allow you to go long or short, so you can even look to enter positions to profit from rising and falling airline stock prices. This can be especially useful in any industry which has a high level of volatility.

How to Choose the Best Momentum Stock for my Portfolio?

Knowing which momentum stocks to buy can be a difficult task. However, if you consider a few points in your research, you can potentially pick the best momentum stocks on the market.

Quite possibly the most important point you need to take into consideration is the financials. Pay close attention to the company’s balance sheet, and discover how much debt the company has, alongside its cash flow levels.

If there is a wide disparity between the two figures here, this indicates that the firm might potentially struggle to meet short-term debt obligations and puts it in a critical condition. On the opposite end of the spectrum, you are in for a treat if it performs well. 

Benefits of Momentum Stocks

Momentum stocks offer several benefits to investors; let’s dive into some of them.

There is potential for more high profits over a short time period. Additionally, leveraging the market’s volatility can lead you to an advantage. 

Drawbacks of Momentum Stocks

There are also drawbacks and risks when it comes to buying momentum stocks. 

There’s a high turnover, which can be expensive as high fees are involved. Additionally, it’s time-intensive, which means that you need to regularly track the market details. It’s also really market sensitive and works best in a bull market.

Where to buy Momentum Stocks – Full Broker Reviews

Once you have decided exactly which momentum stocks you would like to invest in, the next step that you need to make is to find a suitable broker who can facilitate your purchase in full.

In this section, we’ll go over some of the best selections you have in terms of regulated brokers, which will allow you to buy momentum stocks at a 0% commission.

1. eToro – Overall Best Place to buy Momentum Stocks

eToro is a regulated online brokerage that has millions of investors on its books and has been around for quite a long time. Given its time on the market, it is now regulated by SEC, FCA, ASIC, and other reputable bodies. What this means is that you can invest in momentum stocks safely. At eToro, you can access thousands of stocks from many international marketplaces, which means that you can buy and sell a wide range of momentum stocks, including all of the picks discussed on this page. Regardless of how much your chosen momentum stock is actually trading at, all you really need to do is meet a minimum requirement in terms of investment at $50.

All stocks on eToro can even be purchased at a 0% commission basis, and alongside individual companies, eToro even offers you momentum stocks ETFs. 

The minimum deposit requirement is $50, and no fees apply to any U.S. investors. Otherwise, users need to cover a 0.5% fee to convert their local currencies to U.S. dollars. Once the account is fully set up, users can consider the eToro Copy Trading feature, which essentially makes the trading process passive due to the fact that you can choose a trader who will buy and sell assets on your behalf.

In terms of accessibility, eToro is an excellent option if you want to buy momentum stocks in a way that is simple to understand, so any beginner will have an easy time here.

Pros

  • Invest in momentum stocks at 0% commissions
  • Minimal investment at $50
  • Supports deposits using debit cards, credit cards, and e-wallets
  • Used by millions of users
  • Regulated by SEC, FCA, ASIC, and more.
  • Social and Copy Trading Tools

Cons

  • Too basic for advanced traders
  • No support for MT4 or MT5

68% of retail investor accounts lose money when trading CFDs with this provider.

2. Capital.com – Trade Momentum Stocks at 0% Commission

Capital.com essentially allows you to buy momentum stocks in the form of a CFD instrument. This means that you will not actually own the stocks themselves but will be trading them by specifying if you think the momentum stocks will either rise or fall in value. TO do this, all you have to do is place a buy or a sell order. Having access to short-selling tools is an essential part of trading momentum stocks, as this is a volatile sector of the markets.

That said, if you think a momentum stock will fall in value, you can elect to short-cell on the Capital.com platform. 

Most of the time, you will find that the spreads at Capital.com are competitive, and there are no deposit or withdrawal fees that apply. The minimum deposit requirement will depend on the selected payment method. For example, debit or credit cards and e-wallets will only require $20, while bank wires will need a minimum of $250. Additionally, Capital.com holds licenses with the FCA, CySEC, ASIC, and NBRB. When you open an account at Capital.com, the process itself is extremely streamlined and will take only a few minutes.

Pros

  • Top-rated spread betting and CFD broker
  • Licensed by FCA, ASIC, CySEC, and NBRB
  • $20 minimum deposit through debit cards, credit cards, and e-wallets.
  • 0% commission across all market
  • Convenient sign-up process
  • Thousands of financial markets are available

Cons

  • Experienced traders might consider it too basic
  • $250 minimum on bank transfers

68% of retail investor accounts lose money when trading CFDs with this provider.

How to buy Momentum Stocks – Detailed & Explained in Full

If you are ready to buy momentum stocks right away, this section of the guide will walk you through the process of doing so with eToro. You can buy momentum stocks as well as ETFs at 0% commission, and the minimum requirement for you to get started is just $50.

Step 1: Open a Broker Account

You can start by visiting the official eToro website, after which you can click on the “Join Now” button, and follow the on-screen prompts by entering your personal details, while also choosing a username as well as a password.

Keep in mind that since eToro is heavily regulated, you will be required to upload a copy of your government-issued I.D. as a part of the know-your-customer (KYC) procedure.

Step 2: Deposit Funds

You can make a deposit into your newly created eToro account, and the minimum deposit you can make is $50. There are no deposit fees if you are depositing using U.S. dollars, while other currencies have a fee of 0.5%.

Note that if you want to buy momentum stocks instantly, it’s best if you use a credit card, debit card, or e-wallet option such as PayPal.

Step 3: Search for Momentum Stocks

In the search box at the top of the page, you will need to enter the name of the momentum stock that you will buy. You can also view a full list of momentum stocks on offer by eToro by clicking on “Discover,” followed by “Stocks.” 

Step 4: Buy Momentum Stocks

All you have to do now is select how much you would like to invest in momentum stocks. Keep in mind that you do not need to buy full shares at eToro, and you can invest any amount you would like, assuming it meets the criteria of the $50 minimum deposit.

Once you are ready to purchase your chosen momentum stock, all that’s left for you to do is click on “Open Trade,” and that’s it. You have successfully invested in momentum stocks at 0%.

How to Buy Momentum Stocks – Conclusion

Finding the best momentum stocks to invest in will be a difficult task and will be ever-changing as the market and demands of the world shift.

If you want to buy momentum stocks right away, and you know which companies fill your investment goals the most, consider completing the process at a brokerage that is fully regulated, such as e-toro, for example. You only really need to cover a $50 minimum, and all stock investments are commission-free as well.

How to Buy Momentum Stocks?

Where to Buy Momentum Stocks?

What Are the Best Momentum Stocks to Buy Right Now?

Should I Buy Momentum Stocks?

How Much Do You Need to Buy Momentum Stocks?

 

About Milko Trajcevski PRO INVESTOR

Milko Trajcevski is a truly determined content writer with a passion for the crypto industry and has a successful track record of researching and effectively writing articles about cryptocurrency, non-fungible tokens, and blockchain covering the fields of crypto-asset regulations, wallets and exchanges, liquidity, altcoins, DApps, forks, mining, laddering, security and enterprise blockchain technology.