Economists and Wall Street experts would like you to believe that stock prices rise based on a companies financial growth prospects, it’s earnings, etc..

As you have witnessed over the last year or two even companies with the best financial prospects have crashed.

The truth of the matter is, stock prices are driven by nothing more than supply and demand. How much supply is available on the market and what the demand is for that supply.

The demand can be increased if a company reports great earnings, but the demand can also be created by a revolutionary new product, or perhaps a new maverick CEO has taken over.

Your job as an investor is to find which stock has the lowest supply (shares of stock available to be purchased) and that will soon have a big demand. If you can get in before the demand arrives, then you will be the one making the big profits.

One way to find a growing demand is with Mutual funds. Funds usually buy many hundreds of thousands of shares in a company they like. They spread their purchase out over many months. All you have to do is find top rated (check Moody’s) mutual funds and see what they have bought recently.

Get their prospectus, call the companies investor relations dept, subscribe to a service that provides this service in a timely manner (investors.com is one). Once you get in, watch the price rise as the mutual fund managers complete their position over time.

Stock investing is all about being the first investor to the party. Time it right and riches await you.