Many people jump when they hear that a stock is going to split. There is no reason to get excited about a split. All it means is that you’re getting twice as many shares for half the original price so in effect you’ve gained nothing. However, in the very long term, a stock that has split many times can give you substantial returns. But for the moment we’re not concerned with investing over long periods of time. So the truth about stock splits is this. A stock that is about to split will grab a lot of attention about two weeks before the actual split. Once the split occurs most stocks drop in value. What we need to do is find stocks that are about to split within the next few weeks, there are many sites offering this information, for this example we’ll use yahoos splits calendar which you can find by doing a search on Yahoo.

Once you’ve found your list of splits you can enter them into any online stock site that will keep tabs on your stock for you, there are many out there, just do a search on any of the main search engines. You can save them here & keep an eye on them over the following weeks. Some of these sites can organize up to 30 charts for you at any one time onto the same screen so you can view all your upcoming splits in one glance thus saving you a lot of time. Once you see a stock moving up about two weeks before a split is due then this is a good candidate for trading. Some traders only trade Stock splits using these trading strategies & make a fortune doing so.