• UGI USER
  • Jan 11, 2024
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MOMENTUM INVESTING

Focus: Momentum Investing

Source: Finbold

Understanding Momentum Investing:

  • Definition: Unlike traditional advice to buy low, momentum investing involves buying assets with rising prices and selling falling ones.
  • Contrasting Tradition: Strategy aiming to profit from ongoing market trends.
  • Involves buying rising securities and selling at perceived peaks.
  • Trends Recognition: Based on the belief that discernible trends persist, allowing investors to recognize and participate early for significant profits.

Counter-Logic

  • Traditional Wisdom: Traditional advice encourages buying undervalued assets during crises for later profit. Momentum investing’s “buy high, sell higher” contrasts this.
Key Term:

 Momentum:

Refers to a price trend’s ability to sustain and persist in the future.