InvestorQ : Can momentum be a guide to trading at all times?
Anisha Awate made post

Can momentum be a guide to trading at all times?

Answer
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2 years ago


That is the bottom-line! When you trade in the market, your primary and sole focus is to make money. You should not bother about proving the point that you are better than the market because you are not. The market represents the collective wisdom and the collective follies of millions of investors and traders. It is a great sounding board for bouncing off your ideas and fine tuning your trading strategy. In fact, after you have conducted all the due diligence in the market, finally apply the test of momentum. You can be a successful trader in the market only if you have momentum on your side and in your favour. That is why understanding momentum and playing on its side becomes so important.