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The strategy in the exchange has always been buy low sell high. The method of hot or momentum stocks is buy high and sell higher. The idea is to look out for stocks a rising in price, buy them and then sell when they stabilise or start to lose value. By trading this way, you don’t have to hang onto the stock as long.

Instead of purchasing undervalued stocks and waiting weeks or months for them to rise in price, with the hot stocks approach, you purchase stocks that are rising in value. Rather than holding the stocks, you wait only a short while and sell them when their value is higher than the price you paid. You turn a fast profit.