Chapter 12: Momentum Trading
by PRASHANT SHAH -
“Success is where preparation and opportunity meet.” – Bobby Unser We have had an extensive discussion on momentum investing in detail, and it is important to understand how it differs from momentum trading. While both approaches are based on the principle of riding momentum, the expectations, processes, and activity levels in these two approaches are ... Read more
Chapter 13: Trading Strategy Engine
by PRASHANT SHAH -
“What makes a decision great is not that it has a great outcome. A great decision is the result of a good process.” — Annie Duke The momentum investing strategy engine that we discussed in the previous section can also be effective for developing a momentum trading plan. Stocks that meet momentum investing criteria often ... Read more
Chapter 14: Effective Setups
by PRASHANT SHAH -
“I believe in analysis and not forecasting. The key to success in investing is not in predicting the future, but in systematically following the present.” – Nicolas Darvas A technical trading strategy typically forms the foundation of any momentum trading plan. These strategies establish the rules for entry and exit, providing a structured approach to ... Read more
Preface
by PRASHANT SHAH -
Attributed to the momentum researchers and practitioners who have contributed to this field. Dedicated to the Definedge community. This book is the result of a question I received in the comment section of a video I recorded. Someone asked me about the momentum strategy, and I initially thought that momentum strategies were popular and well-known. ... Read more
How to read this book
by PRASHANT SHAH -
This book is structured in two parts: Momentum Investing and Momentum Trading, as each requires a distinct approach. The first two chapters are relevant to both types of strategies, providing an understanding of the history and core concepts of momentum. The chapters are organised sequentially, offering a structured approach towards understanding momentum as a key ... Read more
