Momentum Investing
Percentage wise, my momentum investing is most profitable so far. I classify this strategy into 3 sub strategies depending on the average durations.
• Holding stocks for less than a month. This is my primary strategy. I do not consider fundamentals but on price momentum.
• Holding stocks for about 2 months. Sector rotation is one example of usage.
• Holding stocks for 3 months or even longer. Need to incorporate both fundamental metrics and technical indicators. Also incorporate covered calls to generate income. A good strategy in a sideway market.
My momentum stock experience
This strategy provides me steady income by working an hour or two every week. How long will it last? I do not know. I will describe the concept here, so you can devise your own to fit your risk tolerance and requirements.
As of this writing, this strategy is having amazing return. Though these returns may not be sustainable, my convictions are so strong that I am boldly increasing my investment.
The concept of a momentum strategy
Each week, I buy about 5 stocks based on the momentum metrics and sell them within a month. I do not use the fundamental metrics as they will not be effective in such short duration. From my current record, the average holding time is about 20 days.
The details of my strategy will not be disclosed fully. When the strategy is used too often, it will not be effective and would end up churning the same stocks for all its followers. However, let me elaborate on the implementation of this momentum strategy and give you ideas how to build one yourself.
My Theory
When a stock is on the uptrend, most likely it will continue so. Do not buy stocks when the market is risky (Section I). Protect yourself by using stops and / or using technical analysis.
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• Holding stocks for less than a month. This is my primary strategy. I do not consider fundamentals but on price momentum.
• Holding stocks for about 2 months. Sector rotation is one example of usage.
• Holding stocks for 3 months or even longer. Need to incorporate both fundamental metrics and technical indicators. Also incorporate covered calls to generate income. A good strategy in a sideway market.
My momentum stock experience
This strategy provides me steady income by working an hour or two every week. How long will it last? I do not know. I will describe the concept here, so you can devise your own to fit your risk tolerance and requirements.
As of this writing, this strategy is having amazing return. Though these returns may not be sustainable, my convictions are so strong that I am boldly increasing my investment.
The concept of a momentum strategy
Each week, I buy about 5 stocks based on the momentum metrics and sell them within a month. I do not use the fundamental metrics as they will not be effective in such short duration. From my current record, the average holding time is about 20 days.
The details of my strategy will not be disclosed fully. When the strategy is used too often, it will not be effective and would end up churning the same stocks for all its followers. However, let me elaborate on the implementation of this momentum strategy and give you ideas how to build one yourself.
My Theory
When a stock is on the uptrend, most likely it will continue so. Do not buy stocks when the market is risky (Section I). Protect yourself by using stops and / or using technical analysis.
Momentum Investing
Percentage wise, my momentum investing is most profitable so far. I classify this strategy into 3 sub strategies depending on the average durations.
• Holding stocks for less than a month. This is my primary strategy. I do not consider fundamentals but on price momentum.
• Holding stocks for about 2 months. Sector rotation is one example of usage.
• Holding stocks for 3 months or even longer. Need to incorporate both fundamental metrics and technical indicators. Also incorporate covered calls to generate income. A good strategy in a sideway market.
My momentum stock experience
This strategy provides me steady income by working an hour or two every week. How long will it last? I do not know. I will describe the concept here, so you can devise your own to fit your risk tolerance and requirements.
As of this writing, this strategy is having amazing return. Though these returns may not be sustainable, my convictions are so strong that I am boldly increasing my investment.
The concept of a momentum strategy
Each week, I buy about 5 stocks based on the momentum metrics and sell them within a month. I do not use the fundamental metrics as they will not be effective in such short duration. From my current record, the average holding time is about 20 days.
The details of my strategy will not be disclosed fully. When the strategy is used too often, it will not be effective and would end up churning the same stocks for all its followers. However, let me elaborate on the implementation of this momentum strategy and give you ideas how to build one yourself.
My Theory
When a stock is on the uptrend, most likely it will continue so. Do not buy stocks when the market is risky (Section I). Protect yourself by using stops and / or using technical analysis.
• Holding stocks for less than a month. This is my primary strategy. I do not consider fundamentals but on price momentum.
• Holding stocks for about 2 months. Sector rotation is one example of usage.
• Holding stocks for 3 months or even longer. Need to incorporate both fundamental metrics and technical indicators. Also incorporate covered calls to generate income. A good strategy in a sideway market.
My momentum stock experience
This strategy provides me steady income by working an hour or two every week. How long will it last? I do not know. I will describe the concept here, so you can devise your own to fit your risk tolerance and requirements.
As of this writing, this strategy is having amazing return. Though these returns may not be sustainable, my convictions are so strong that I am boldly increasing my investment.
The concept of a momentum strategy
Each week, I buy about 5 stocks based on the momentum metrics and sell them within a month. I do not use the fundamental metrics as they will not be effective in such short duration. From my current record, the average holding time is about 20 days.
The details of my strategy will not be disclosed fully. When the strategy is used too often, it will not be effective and would end up churning the same stocks for all its followers. However, let me elaborate on the implementation of this momentum strategy and give you ideas how to build one yourself.
My Theory
When a stock is on the uptrend, most likely it will continue so. Do not buy stocks when the market is risky (Section I). Protect yourself by using stops and / or using technical analysis.
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Momentum Investing
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Product Details
| BN ID: | 2940151010283 |
|---|---|
| Publisher: | Tony Pow |
| Publication date: | 09/23/2015 |
| Sold by: | Barnes & Noble |
| Format: | eBook |
| Sales rank: | 884,739 |
| File size: | 680 KB |
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