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Trading 101: How to Trade using Momentum

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Trading 101: How to Trade using Momentum


This article was posted on Tuesday, 16:34, UTC.

Momentum is an interesting concept.  When you relate it to people and those who trade the markets, momentum reflects the change in sentiment and the inertia of the price movements. When things are going well, the good times are rolling and when bad things start to appear, the sky can be falling.  People use the saying, “when it rains it pours” which means that when negative momentum accelerates, things can turn awful quickly. Since human emotion is an important part of determining future price movements, measuring momentum is a tool that should be part of your trading arsenal. There are…

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David Becker

David Becker

David Becker is a New York-based finance writer and capital markets analysis. With more than 25 years of experience in derivatives trading and risk analysis, David runs a consulting business that focuses on investment evaluation and personal finance. David has been published on high profile online and print media. He holds a B.A. in economics.

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