momentum strategy

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Momentum Trading What is it? http://www.momentumtradingstrategy.com

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Momentum Trading basic explanation. How to invest in stocks using momentum trading strategy and how to limit risks in investing in the stock market.

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Page 1: Momentum strategy

http://www.momentumtradingstrategy.com

Momentum Trading What is it?

Page 2: Momentum strategy

http://www.momentumtradingstrategy.com

What is Momentum Trading?Trade stocks that are moving significantly in

one direction on high volume

Jump on board to ride the momentum train to a desired profit

Just like riding a wave

Page 3: Momentum strategy

http://www.momentumtradingstrategy.com

How to find momentum stocks?Ride day trading “hot stocks” before they fall

off or

Ride funds during 30 days durations

Page 4: Momentum strategy

http://www.momentumtradingstrategy.com

Pitfalls of Momentum Trading Jumping into a position too soon, before a momentum move is

confirmed.

Closing the position too late, after saturation has been reached.

Failing to keep eyes, missing changing trends, reversals or signs of news that take the market by surprise.

Keeping a position open overnight. Stocks are particularly susceptible to external factors occurring after the close of that day's trading - these factors could cause radically different prices and patterns the next day.

Failing to act quickly to close a Pitfalls of Momentum Trading

bad position, thereby riding the momentum train the wrong way down the tracks

Page 5: Momentum strategy

http://www.momentumtradingstrategy.com

Win with Momentum Trading StrategyCreate automated algorithm, taking the

emotion out

Rolling momentum moves, always riding the last wave

Base it in index funds, not individual stocks