How To Invest: Nvidia, Tesla Reveal 3-Step Routine For Bull And Bear Markets

Led by tech stocks, this year’s powerful uptrend follow last year’s bear market and shows once again why investors need a strategy for handling changing market trends and swings in growth stocks like Nvidia (NVDA), Tesla (TSLA) and Google parent Alphabet (GOOGL). One key to successful stock investing is to make sure you have a sound — and doable — routine for investing in stocks in good times and bad.


Backed by time-tested rules for when to buy, sell and hold, this three-step approach can help you navigate whatever the market indexes do. Depending on current market conditions, you’ll see how these rules and this routine apply to stocks like NVDA, TSLA and Google stock, as well as (AMZN), Microsoft (MSFT), Apple (AAPL) and other bellwether names.

For example, these rules have come into play for Nvidia and Tesla as they retreat to test support at their 10-week moving averages as the market indexes come under pressure. Meanwhile Google stock continues to trade within buy range.

The same guidelines apply to new IPOs to buy and watch. So while tracking household names like Microsoft stock and Apple, use this same approach to monitor IPO Leaders such as On Holding (ONON), Duolingo (DUOL) and Procore Technologies (PCOR).

The routine below walks investors through three basic steps to help you grow and protect your money. And you’ll find the screening tools and stock lists you need to quickly and confidently follow those steps.

Investing in stocks based on sound rules and stock ratings will help you stay profitable, protected and prepared in any market environment.

Three Key Factors For Safe And Successful Stock Investing

Find And Track The Best Stocks To Buy And Watch

This three-step process also helps you track and handle strong market uptrends, as well as bear markets, choppy periods, and times of sector rotation. During bullish as well as bearish cycles, growth stocks, tech stocks, energy plays, retailers, industrials and other sectors will come in and out of favor on Wall Street.

Tesla, Google and Nvidia are just three examples of highly watched stocks that have gone through roller coaster rides in recent years. The same certainly goes for Facebook parent Meta Platforms (META).

Boosted by a rebound in ad sales and the artificial intelligence trends, META stock has delivered an impressive rebound after entering a long slump in September 2021. The AI wave has also helped power turnarounds in MSFT, GOOGL, AMZN, MSFT, TSLA and a whole slew of so-called AI stocks.

One key to gauging strength or weakness in the stock market indexes and individual stocks is to see how they behave around their 50-day and 10-week moving averages. Are they finding support or hitting resistance? Investors can ask that question right now for the Nasdaq as it tries to hold support at its 50-day line.

While checking the general stock market trends, be sure to also track chart patterns in individual stocks as part of this routine. This helps you identify buy points and buy zones for potential and recent breakout stocks. Watching such technical analysis also helps you avoid getting swayed by any hype or hysteria in the headlines. This approach helps you stay grounded, keep investor psychology in check, and stay focused on what market and leading growth stocks are actually doing.

Keep in mind that the stock market direction can change quickly — for better or worse. And there will be times when certain sectors, such as growth and tech stocks, perform poorly while others show strength.

To zero in on the best stocks to buy and watch that fit your investing criteria, use the IBD Stock Screener to browse preset lists or build you own custom screens.

Study Stock Charts To Find Top Growth Stocks To Buy And Watch

Nvidia, Microsoft, Apple, Tesla stock and other Big Tech stocks, such as Meta Platforms, Amazon, Google and Netflix stock. are just a few examples of stocks that have shown exceptional performance across several market cycles. These stocks have also gone through turbulent periods of heavy selling.

To study these winners, take a look at the daily, weekly and monthly charts for Alphabet, Amazon, Tesla, Nvidia, Apple and other traditional growth stocks. (If you’re new to technical analysis, see our section on how to read stock charts.)

And if you’re looking for the best long-term investments that have weathered several volatile periods, see which stocks make the cut for IBD Long-Term Leaders. You’ll find names like Microsoft and Cadence Design Systems (CDNS).

To get started, see our coverage of current stock market trends and case studies of leading growth stocks to buy and watch with Investor’s Corner.

How To Invest: 3-Step Investing Routine

1. Check Current Market Trends With The Big Picture And Market Pulse

Under the ‘Market Trend’ tab on, go to: The Big Picture

The first step is to know what kind of market we’re in right now. Is it time to buy stocks, or is it time to play defense and protect your profits?

Find out by checking the Market Pulse inside The Big Picture. You’ll find the recommended market exposure level to help manage your risk based on the current market environment.

This five-tiered approach to market exposure ranges from 0% to 20% in bear markets or corrections, all the way up to 80%-100% in robust bull markets.

Also see: Stock Market Today (updated multiple times throughout each trading session)

2. Find The Best Stocks To Buy And Watch With IBD Stock Lists

Under the ‘Stock Lists’ tab on, go to: Stock Lists

The best performing stocks typically display seven common traits in the early stages of their big moves.

Using exclusive stock ratings and stock lists like the IBD 50 and Sector Leaders, you can quickly identify which stocks are most strongly showing those same characteristics right now. You can also use IBD Stock Screener to find stocks that fit your own custom criteria.

Which Top-Rated Stocks Are In Or Near A Buy Zone Right Now?
Simply scroll through IBD screens to find highlights of top-rated stocks in or near a potential buy range. It’s a simple, effective and fast way to build your watchlist.

3. Evaluate Your Stocks And Plan Your Trades With Stock Checkup And IBD Charts

Under the ‘Research’ tab on, go to: IBD Stock Checkup | IBD Charts

What’s the most effective way to maximize your profits and minimize risk? Always check both the company’s “fundamentals” (e.g. sales, earnings, products and industry trends) and “technicals” (e.g., price and volume action, support and resistance in the chart).

That combination gives you a major advantage over investors who only look at one or the other.

Does Your Stock Pass Or Fail?

Stock Checkup gives you pass, neutral or fail ratings for the most important stock-picking criteria. Just enter the ticker for an instant diagnosis of your stock. (See how to diagnose your stocks.)

Time To Buy, Sell Or Hold?

Additionally, before you buy a stock use IBD Charts to make sure it’s in a proper buying zone. And use charts to see the right time to take your profits and minimize risk.

Also see: Free investing lessons on How To Buy Stocks | When To Sell Stocks | How To Read Stock Charts

How To Invest: Find The Best Stocks To Buy Before They Break Out

IBD stock lists help you speed up your research. You’ll also find alerts to stocks in or near a potential buy zone in the chart analysis provided for each name on IBD Sector Leaders, IBD 50, IBD Big Cap 20, IPO Leaders and Stock Spotlight.

Regularly monitor these stock lists and indexes using a buying checklist and selling checklist as part of your investing routine. Also, be sure to check the IBD Breakout Stocks Index, updated weekly.

Checking these screens regularly is a proven way to help improve your investing results by quickly building a high-quality, actionable watchlist. Using this simple three-step routine will also help protect your profits and keep any losses small in weak markets.

Follow Matthew Galgani on Twitter at @IBD_MGalgani.

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