![]() Medium-term investors can even find stocks with momentum that stretches on for 12 months or longer.Īnother thing to consider is how much volatility you’re willing to tolerate. ![]() Stocks can have momentum for a few hours – which is good for day trading – or for days or weeks at a time – good for swing trading. Factors to Consider Before Searching for Momentum Stocksīefore you start your search for momentum stocks, you’ll need to make a few decisions about what types of momentum stocks you want to look for.įirst, consider your timeframe. That way, you can avoid holding the stock if and when a reversal occurs. The goal behind momentum investing is to buy when momentum is strong and sell when it starts to fade. When trading momentum stocks, it’s important to keep in mind that momentum always comes to an end eventually. Typically, a momentum stock has seen its price rise steadily up (or down) for a prolonged period with relatively little interruption. What is a Momentum Stock?Ī momentum stock is any stock that is in the middle of a strong bullish or bearish trend. In this article, we’ll show you two ways you can build a momentum stock screener and find momentum stocks using Scanz. The key to any successful momentum trading strategy is finding stocks that have plenty of upside left in them and recognizing. Momentum trading is a popular strategy in which traders seek to buy winning stocks and sell them when they begin to run out of steam.
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