Most stock traders know that momentum trading can be a very rewarding activity. You can make enormous amounts of cash in a short time period.
The issue is, that in the event you do not know what stocks to look for and how to approach them and leave everything to chance, you could end up wasting money instead of making your profits grow.
That is why the most important feature of momentum trading is the knowledge FILTER you employ to make your buy and sell decisions. There are many”fantastic” inventory systems and trading strategies outhere, but you want to test them so as to discover which ones help you the most. That is part of your homework for a stocktrader. Test, test and test again.
Complicated online trading strategies that rely on a”boat load” of technical analysis indicators can make you slow, and being slow when trading hot momentum stocks can be as dangerous as not knowing what to do in the first location.
The worst thing that could happen to a novice momentum trader is to get information overload. It’s far better to go step by step, and test a simple stock trading strategy that can show you how you can focus on concrete ways to make money and select better hot stock trading opportunities once at a time.