Momentum Trading
a.k.a. Momentum strategy
A style that buys what is already rising fast and sells what is falling fast, betting the move keeps going.
Momentum trading means jumping on a moving train. Instead of hunting for bargains, momentum traders look for markets already surging with momentum, often on a breakout or after a big news shock, and ride them until the push fades.
The edge comes from the fact that crowds tend to pile in late, extending moves. The danger is that trains stop suddenly: buy at the top of a spike and you are the last passenger before the reversal. Tight exits matter more here than almost anywhere.
Keep this word for good
Your free Private Swap Lounge saves the terms you’ve learned and quizzes you on them. Portal under construction. Expected delivery date is December 01, 2026.