Knowledge about stock momentum will help you make millions

Many readers of this blog and beginner traders email me asking where should they start. I always tell them to try and develop understanding of what is momentum , how it works and how to use it.

For swing trading using momentum can help you find many profitable opportunities. The best use of momentum is to reduce your tradable universe to only stocks with confirmed and established momentum.

Currently there are over 5000 stocks actively traded in the market. Momentum allows you to narrow that list to few hundred stocks with best potential for profit.

Momentum based stocks are the low hanging fruit. You know a stock is going up or down and then you can target part of that move. You can find entry points in direction of momentum along the way.

Momentum is a very powerful friend of short term as well as long term traders. If you are looking for long term trades, momentum is still your best bet.

If you understand momentum you will be trading fast moves in the market. For investors also stocks with momentum offer various position trading opportunities

If you are serious about your trading develop basic idea about:

What is momentum.

Why momentum works

What is momentum anomaly

Why momentum anomaly has been shown to be number one anomaly by profit potential

How can you scan for momentum

What is relative momentum in stocks

How can you scan for relative momentum

What is absolute momentum and how to scan for it.

How can you use momentum in swing trading

How can you use momentum in position trading

How can you use momentum as a growth investor.

How can you use momentum as a value investor.

How can you use momentum as a ETF investor.

There are many ways to slice and dice momentum. Having working knowledge about momentum will help you make millions over the years.

Best site to learn to trade

If you are serious about your trading and want to build an enduring edge, the Stockbee Member site might help you.

Members tell me they have tried a lot of things before coming to my site, and it has offered them the most extensive and detailed methods to swing and position trade. Members range from very experienced traders to novices.

No advertising, no hard marketing, no promotions, no free offers, no affiliate marketing, no incentive to other bloggers to promote the site, no constant tweets self-promoting the site, and no tall claims. Every member comes through word-of-mouth recommendations from existing members.

As a member, you will learn the basics of swing trading, momentum investing, growth investing, and risk management. You will learn about Stockbee Momentum Burst breakouts, Stockbee Trend Intensity Breakouts, Stockbee Episodic Pivots Breakouts, Stockbee Lemonade Strategy for 401k, and many other member-shared methods.

You will learn how to set up your own scans, how to select the right kind of stocks, how to set up stops, when to enter, when to exit, how much to risk, how to track your trades, and all other details about trading.

You will learn about developing your own methods and not relying on others for trade ideas. Develop your own edge. Once you develop your own method, you will have a lifelong profitable method.

The site gives you an opportunity to interact with some of the most successful traders and learn from them about their trading methods. It is a vibrant community with members from different backgrounds and experiences willing to help each other. Members have shared their methods, scans, software, backtests, and market insights.

Every day, the emphasis is on continuous learning and upgrading of market knowledge and setup knowledge. The members range from hedge fund employees, financial advisers, active swing traders, investors, and new traders.

You will see that many trading bloggers have been using my market timing methods, scans, and chart templates. They have developed their own methods based on my methods.

Almost every member comes through a recommendation of some of the leading trading bloggers and trading sites. 80% or more members continue to be members for more than 3 years. Most tell me that they stay on because every day they learn so much from the members' site.

If you are looking to develop your own trading strategy, the membership site might be for you. You have to be willing to put in the effort to build your own method. There are no silver bullets offered on the members' site. Every method, every scan, every nuance is detailed, and all possible help is offered to design your own method.

2 comments:

Shilen said...: Hi Pradeep, Great advice. Which 1 or 2 books or white papers have really helped you develop your ideas and answers to these questions on momentum. I would like to increase my knowledge and then practice applying it to develop skill in momentum trading. Thanks in advance.; Jul 13, 2016, 11:49:00 PM
Pradeep Bonde said...: Hedge Fund Edge by Boucher; Jul 14, 2016, 6:59:00 AM

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