Momentum Investing
Definition
An investment strategy that buys securities showing strong recent upward price trends and sells those with downward trends, betting that performance will continue in the same direction.
Example
Momentum investors buy stocks in the top 20% of 12-month performance and hold for 3-12 months.
Related Terms
Frequently Asked Question
What is Momentum Investing?
Momentum investing buys recent winners and sells recent losers, betting on trend continuation. Academic research shows momentum effects persist across asset classes, though they reverse sharply in downturns.
APA Citation
Last updated:
· Source: VixShield Trading Glossary — From SPX Mastery by Russell Clark
⚠️ Not financial advice. This definition is educational content from the SPX Mastery book series by Russell Clark (VixShield). Past performance is not indicative of future results. Trading options involves substantial risk of loss and is not appropriate for all investors. Always paper trade before risking real capital.