Momentum Trading

Momentum Trading is a simple concept. You are not looking to get exact bottom, and your not looking to get exact top. You are strictly looking for a specific setup that allows you better Risk/Reward than majority of other styles. There is no DD, hours of Scanning every night, no need to post on Social Media.

Below are a few examples of Momentum, we wait for liquidity to rush into a stock, and for our backtest to happen. If the backtest holds, then we enter. If that backtest fails directly after, we hop out. With the patience of that backtest the risk can be kept to a minimum. For example if Stock A pops above our MA at 2.5 we look at entering right after around 2.52, if it fails back below that 2.5 our stop is directly below around 2.45. If it holds we ride the momentum upwards. The chart will show when Momentum is fading, with the MAs curling etc, and we look to hop out and consolidation period to begin. This also works with Downside Momentum. Same concept from OTC, to Smallcaps, and Options just different timeframes.

Seen most traders ride stocks up from .002 to .01s, and back down instead of making it 2 trades. Ive seen traders hop into SPY puts when Momentum is to the upside etc. And I see traders nonstop pumping on Social Media, or hopping into stocks that are sitting idle. To me its a large waste of time and Capital. Instead of reading the Chart, your hoping others hop into the stock and push it for you eventually, but why not hop in when the stock is ready to move?

Stop Gambling, if a chart is pointing Up don’t hop in Puts. If a chart is extended wait for the backtest. Stop letting small to midsize accounts sit idle, there is 0 reason to ride a stock from .01-.03 and back down repeatedly, if you want that I suggest hopping into a 0% interest rate savings account. Treat this like a job, take it seriously, have patience, wait for your setup, meet your Daily Goal. Anyone that learns this style, and how simple it can be will do well. I’ve never understood how people will work a 9-5 for less than $300 a day, but then let $1k+ gains slip away.

You don’t need a large following, or to post on Social Media at all to be an actual trader. You don’t need to stare at screens all day, we have many traders that work fulltime and implement this. And if your complaining about a market being dead, it’s your fault for not learning other markets. #keepitsimple