Archive | Alan Greenspan

Momentum seen as a bull on a stock chart through a magnifying glass!

Momentum Investing – a trading play

Presuming an already uptrending or bullish market, a strong bull run for an individual stock needs momentum to continue upward price movement for any significant time. The bull icon serves interchangeably to represent a rising market, an investor buying long or the rising stock play itself. At such times we can say the bulls or herd runs as prices, volumes and investors charge ahead! At a minimum, momentum needs both an increasing price for the stock and an increasing volume of shares traded. Simple basic trading of a momentum play means buying a rising stock that on most days continues rising or trending to ever higher prices. Profitable momentum play execution requires trading out or selling the stock at the higher prices. Most such plays unfold over a matter of weeks or a few months; few extend longer than a year.

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