Momentum Investing Strategy: Complete Guide to Riding Market Trends for Profits
Momentum investing is about following the trend. It’s the idea that an asset moving up or down in price will often keep moving in that same direction for a while. Think of it like catching a wave—you jump on when it’s already building momentum and ride it until it starts to fade.
Instead of trying to find undervalued bargains, this approach focuses on buying assets that are already performing well and selling those that are struggling. In simple terms, it’s a "buy high, sell higher" mindset. Plenty of research and market history back this up as a way to potentially boost returns, especially over shorter time frames.
