5 Warning Signs Your Stock's a Fad

Your teenage daughter suddenly wants to wear cowboy boots, even though you live in the city. Your son won't tie his shoes. The woman next store dyes her hair pink. And every now and then, a stock surges quickly higher and then disappoints investors who jumped on board for the ride up with an even more dramatic crash.

Fads come and go, and so to "fad stocks." To avoid getting stuck in one on the way back down, you need to understand what a fad stock is and the warning signs to watch out for.

History of Fad Stocks

Fad stocks are nothing new, and you might be familiar with some examples from the past. Many of the stocks still exist today, though likely not in their fad form. Here are a few from over the years: ...