Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Momentum strategy

1,486 views

Published on

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

Published in: Business, Economy & Finance
  • Be the first to comment

Momentum strategy

  1. 1. Momentum TradingWhat is it?http://www.momentumtradingstrategy.com
  2. 2. 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 wavehttp://www.momentumtradingstrategy.com
  3. 3. How to find momentum stocks?  Ride day trading “hot stocks” before they fall off  or  Ride funds during 30 days durationshttp://www.momentumtradingstrategy.com
  4. 4. 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 days 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 trackshttp://www.momentumtradingstrategy.com
  5. 5. Win with Momentum Trading Strategy  Create automated algorithm, taking the emotion out  Rolling momentum moves, always riding the last wave  Base it in index funds, not individual stockshttp://www.momentumtradingstrategy.com

×