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
Chapter 7: Noiseless charts
by PRASHANT SHAH -
“If you always do what you’ve always done, you’ll always get what you’ve always got – Henry Ford ————————————————————————————————————————————– The strategy or the tools that you are comfortable with can also become part of your momentum investment strategy. In this context, using noiseless charts can be an interesting twist to the momentum investing strategy, The ... Read more
Chapter 1: The Roots
by PRASHANT SHAH -
“We are not makers of history. We are made by history.” – Martin Luther King Jr. In this book, we will delve into the concept of ‘Momentum,’ exploring it in depth and developing effective momentum investing and trading strategies. To begin this journey, I will start with a discussion on key studies, historical insights, and ... Read more
Chapter 2: The Momentum
by PRASHANT SHAH -
“Momentum begets momentum, and the best way to start is to start.” – Gil Penchina. We have discussed about research papers and experiments highlighting that momentum persists across markets, countries, indices, sectors, and asset classes. In this chapter, we will delve deeper into the concept of momentum to gain a more comprehensive understanding. While discussing ... Read more
