On paper, momentum investing appears to be a less investment and more like a reactive reaction to market data. The notion of selling pressure losers and purchasing champions is alluring, but it goes against the accepted Wall Street adage, “buy low, sell high.”
Investors and momentum traders seek to profit from stock or ETF prices that are rising or falling. Momentum traders think these trends will continue to head in the same price direction because of the momentum already built behind them.
[Read more…] about Profiting from Market Momentum with Trend Trading
