Report post

What is momentum investing?

It is a trading strategy in which investors buy securities that are already rising and look to sell them when they look to have peaked Momentum, in markets, refers to the capacity for a price trend to sustain itself going forward. Momentum investing is a strategy that aims to capitalize on the continuance of existing trends in the market.

Who is the father of momentum investing?

Richard Driehaus (1942-2021) is sometimes considered the father of momentum investing but the strategy can be traced back before Donchian. The strategy takes exception with the old stock market adage of buying low and selling high. According to Driehaus, "far more money is made buying high and selling at even higher prices."

What are the risks associated with Momentum investing?

The risks associated with momentum investing include the potential for market volatility and the possibility that the trend will reverse and the stock will underperform. Is momentum investing suitable for all investors? No, momentum investing is not suitable for all investors.

The World's Leading Crypto Trading Platform

Get my welcome gifts