Stock Market is an ocean where many stocks are floating that have the potential to give huge returns on an annual & quarterly basis. The main question that comes to our mind that how to get returns from stocks ? and how much return on stocks is good. Here you can make decent returns through short-term trading opportunities. For this, you will have to master the art of momentum trading. High-momentum stocks grow your wealth faster. 
What is Momentum Trading?
Momentum trading is the way in which investors buy the stocks going upside with high speed and sell them when they reach their peak. The speed of a stock is called momentum in trading. Like a car running at a speed of 100 km/h. So in trading stock’s momentum is measured by its angel. Suppose Stock A is moving up at an angle of 50 degrees and another Stock B is moving up at an angle of 30 degrees so here Stock A has more momentum/speed. I observed so many times that a large-cap stock hardly moves 10 to 15% in a month while when we see mid & small-cap stocks can easily move 20 to 30% within a month. So we can get high returns if we choose a growth stock with strong financials when it catches momentum.
How Much Return On Stock Is Good?
In comparison with other asset classes equity always gives more return. Historical average annual returns for the stock market are near about 12 to 15%. But You should keep in mind that that doesn’t mean the stock market will consistently earn them 12 to 15% each year. However, stocks return depend upon the capital size. In my opinion, if you have capital below 10 lakhs and select fundamentally strong stocks with high momentum, you can make 40-50% returns on an annual basis easily.
How To Find High-Return Stocks
World’s greatest investor Warren Buffett says, that you should never invest in a business that you don’t understand. The company should have a competitive advantage. The company should be profitable for the last 3 years at least. It is important to choose a profitable and growing stock. Here are some basic points to consider for potential high-return stocks.
Strong Fundamental
Always know a company’s financial health before investing, such as Sells growth, earnings growth, debt-to-equity ratio, and competitive advantages. Find out companies with strong growth prospects. In a company’s balance sheet, cash & reserve should be in increasing order while debt should be in decreasing order. The company’s sales & net profit should be increasing better on an annual basis for at least the last 2 years. Current quarterly sales growth and profit growth of the company should be in increasing order. The company should have a debt-to-equity of less than 1.
Valuation
Assess the stock’s valuation relative to its intrinsic value. Look for stocks that are undervalued or have favorable price-to-earnings (P/E) ratios compared to their peers or historical averages. However, it’s crucial to consider other factors beyond just valuation.
Technically Strong Stocks
Use chart patterns, trend lines, and indicators to analyze historical price movements and identify potential entry or exit points. This analysis can help identify stocks with positive momentum or emerging trends. Can you get 20% return on stocks.
Relative Strength
The relative strength of a stock means the stock’s performance relative to a benchmark or a broader market index like Nifty or Sensex over a specific period.
The market is falling but few stocks are making new highs. Keep them on a separate watchlist and wait for the base building to ride that stock. The technically strong stock always performs in a falling market.
The Market is rising and stocks also rising so choose the stock that is running faster than the market.
If a sector is falling with market falls and all the stocks of that particular sector are going down so choose the stock that is falling less as compare to remaining all stocks of that sector. It means that stock is getting strength relative to other stocks.
When should I sell my stocks?
World’s most famous trader DENZANGER says, as I bought the stock and if it goes in the opposite direction I exit it. There is another term called 50-50, here if your stock is running in profits and now it seems to you that it is exhausting now so you can book 50% of your position now and can trail 50% with stoploss. Selling in the strength in your target area is the best exit for your stock. Selling in the strength in 70 degree straight risen stocks.
Conclusion
One must follow one strategy, one timeframe, one method of stock selection and i promise you that you will be profitable soon. The best stock can be your previously booked profit stocks.