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

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

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 wave
http://www.momentumtradingstrategy.com

3. How to find momentum
stocks?
 Ride day trading “hot stocks” before they fall off
 or
 Ride funds during 30 days durations
http://www.momentumtradingstrategy.com

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 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
http://www.momentumtradingstrategy.com

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 stocks
http://www.momentumtradingstrategy.com