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Every investor is interested in finding out about the hottest big money stocks, but how would one go about getting this information? Though it is not necessary to be an expert in financial matters to understand how to pick a good stock, there are many factors that you can follow that indicate a stock that is set to soar with big moves.

There most important thing in finding big money stocks is to keep track of the buying patterns of institutional investors. These are the people who manage large portfolios of money for major corporations and places such as cities, school systems, or hospitals. Their investments are done in the same manner as individual investors, they buy stocks, mutual funds, and bonds, but they have such a large amount of capital to invest that their purchase, or sale, of a particular equity have a large impact on how attractive an individual investment is. Thus, if some institutional investor invests in a company then it is likely that you will soon see a jump in price.

Hot stocks are generally backed by strong, reputable companies that have solid balance sheets. There are several financial factors that are important to consider when investigating any big money stocks. First, strong sales growth, which is absolutely critical for winning stocks, mostly due to Wall Street's bias toward strong sale growth. This means that strong sales growth figures can keep a company stock strong even in the face of less than stellar earnings releases.

Forecasts of growth in earnings provide another piece of important information for coming up with tomorrow's great stocks, and there are right now excellent growth-to-price/earnings ratios that will be drawing in greater buying pressure from institutional investors. Momentum in earnings is also very important for big money stocks, particularly in light of the deceleration of momentum in the overall marketplace. Stocks that can sustain growth in earnings will always have institutional investors adding relentless buying pressure. Therefore, stocks that are in the position for big moves never show any sign of a slow down in profits.

An increasingly recognized sign that a stock will move up its the ratio between its growth rate and its P/E ratio. Many energy and basic commodity companies, thanks to high growth rates in China and elsewhere, are seeing high demand for their products and thus strong growth rates, while their P/E ratios are still among the lowest on the stock exchanges.

Surprise earnings are another important factor when choosing hot stocks in the small and mid-cap sector, especially since stocks that exceed expectations create greater demand and additional buying pressure. All of these things are important for big money stocks, but there are other factors to consider as well when selecting your stocks, certain factors such as improved cash flow (often resulting in increased dividends), return on equity and expansion on profit margin.