Momentum Investing

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Dictionary Says

Definition of 'Momentum Investing'

An investment strategy that aims to capitalize on the continuance of existing trends in the market. The momentum investor believes that large increases in the price of a security will be followed by additional gains and vice versa for declining values.
Investopedia Says

Investopedia explains 'Momentum Investing'

This strategy looks to capture gains by riding "hot" stocks and selling "cold" ones. To participate in momentum investing, a trader will take a long position in an asset, which has shown an upward trending price, or short sell a security that has been in a downtrend. The basic idea is that once a trend is established, it is more likely to continue in that direction than to move against the trend.

Articles Of Interest

  1.

    Momentum Trading With Discipline

    This type of strategy demands controlled decision-making, requiring a continual refinement of entry and exit techniques.

  2. Use The Momentum Strategy To Your Advantage

    Learn how to use a number of different indicators to know when to make your trading moves.

  3. Momentum And The Relative Strength Index

    These two indicators can give the trader a better understanding of when to get in and out of an issue.

  4. 3 Ways Price Momentum Can Burn Your Portfolio

    Momentum traders are always trying to ride the herd. In these three situations, however, they may end up getting trampled.

  5. Day Trading Strategies For Beginners

    From picking the right type of stock to setting stop-losses, learn how to trade wisely.

  6. Introduction To Momentum Trading

    This trading style offers major profit potential thanks to the powerful way in which momentum can drive a stock.

  7. The 5-Minute Forex "Momo" Trade

    Learn this simple momentum strategy and its profit protecting exit rules.

  8. Forex: Keep An Eye On Momentum

    Using the simple MACD histogram could change how forex traders analyze currency pairs for good.

  9. Divergences, Momentum And Rate Of Change

    Divergences may signal a change in market direction, but traders must also identify the speed of that change.

  10. Riding The Momentum Investing Wave

    Buy high and sell higher. Find out if you could surf these risky waters.
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