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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

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  2. Use The Momentum Strategy To Your Advantage

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  3. Momentum And The Relative Strength Index

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  4. 3 Ways Price Momentum Can Burn Your Portfolio

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  5. Day Trading Strategies For Beginners

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  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

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  8. Forex: Keep An Eye On Momentum

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  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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