Is there such a thing as a hot stock? I’m sure that there is but the term “hot” is so subjective that what’s hot for me might not be hot for you. As an example, $FEED is one stock that has really been climbing lately and to a lot of “quick” traders who don’t mind getting in and out of a trade several times would consider it a hot stock. On the other hand, the volume only recently picked up in the stock and it is under the psychological price level of $10 so for others, it would not be considered a hot stock.
There are lots of variables that are often referred to as “due diligence” that need to be performed before buying a stock. It’s been my experience that when I hear about hot stocks or stocks that are really moving, the game has already begun and I would be entering late and without doing my own research. Bottom line is that your odds decrease in being unprofitable in a trade when chasing the so called hot stocks. Over the long haul you’ll be much better off doing your own research and learning what to look for so that you can get in at the right time. Remember, fundamental analysis tells you what to buy and technical analysis tells you when to buy it.