Saturday, November 1, 2008

INVESTING STRATEGY -Momentum Investing.

Momentum Investing.


• Highest % Price change over last day, week, and month.

• Highest current quarter Earnings Growth compared to same quarter last year.

• Positive 1-month change in Analysts Earnings Estimates.

• Look for a basing period breakout.

• Increased volume.

• Consider top-down factors.


Entry:

• Use trend reversal indicator e.g. RSI, MACD or Stochastics.


Exit:• Use indicators in reverse.

• Compare with the appropriate Index, looking for divergence.

• Take losses quickly.

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