By Investment U Research Team Momentum trading is one of the simplest forms of trading. While it takes some technical analysis to spot trends, the idea of momentum trading is to do what makes sense. If a stock is falling, short it; if it’s rising, take out a long position. Traders follow the momentum of a security and trade in tandem with the trend.
Momentum trading isn’t necessarily day trading or swing trading. Momentum traders aren’t concerned about time in a position. Instead, they’re concerned about the culmination of the pattern or a reversal of the trend. And while it may seem like momentum investors …read more
