Momentum Investing

Investing Strategies Technical Trader's Sanctuary
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Hello you very wonderful and intelligent people that make up this forum. I sincerely hope you are doing well and you are happy.

I have been reading alot of books and did a course on Momentum Trading / Investing, which looks for certain trends or popular sectors in the market. I kindly wondered please if anyone has the process or checklist they use for doing this. For instance do they use a stock screener for looking at stocks or an industry that is reaching an all time high, then put these stocks on a watchlist and analyse the technical aspects further please? I am just trying to fit together my own processes and procedures for applying the knowledge on this and what would be the best way to do this please? A bit like a checklist that i will do the same tasks each time when i am Momentum Trading, that i will follow strictly.

If anyone kindly could help with this it would mean the world to me and i would be forever grateful for any support you can give. Sending you lots of good wishes and i very much hope you have a wonderful and amazing life. All the best.

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Mixing momentum qualities with other factors like quality and value works better than alone. Momentum works across countries, assets, factors themselves. Drawdowns is the main negative.

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I’m of the same view as musselmant – momentum strategies tend to be very profitable… with some caveats. They obviously provide better predictions when the markets are trending strongly upward or downward. They’re not so good for sideways or zig-zagging markets.
I really like momentum strategies and I watch the 40, 100, 200 day MA lines for support and confirmations.

So, I don’t know if anyone has found a perfect strategy that can be followed all the time, almost mechanically. There is a real art to technical analysis. One has to develop a feel for when to go with their strategy and when to step in and manage things.

The only ‘truism’ I believe 100% of the time is don’t hold loosing stocks; be flexible and humble and exit losses asap; take the loss and move on. It’s not personal, we are all learning.

– Paul

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