How to Trade Momentum Stocks

A momentum stock is defined as a stock whose share price is in an accelerating uptrend. Momentum stocks are typically some of the most widely traded of all stocks. Why is that? The answer is simple: momentum stocks move the furthest in price in the least amount of time. Further and faster than value stocks. Further and faster than growth stocks.

Forbes magazine claims that "momentum strategies can help investors beat the market and avoid market crashes." Even Nobel Prize winning economist Eugene Fama had to admit that his "efficient market theory" could not account for the positive correlation between current momentum and future gains.

Momentum is arguably the strongest force moving the market. To show you what I mean, take a look at the historical returns for the system I use in The Momentum Letter (DrStoxx.com). Over the past 10 years (through June 30, 2015), my primary longs-only momentum system has returned an astounding 39,000%:

With that kind of compounding, a $10,000 investment today could balloon into nearly $4,000,000 by the year 2025!

But there is a dirty little secret about most momentum systems: they lose money over time. Let me prove my point. In the following free webinar I recorded a few months ago, I lay out the reasons why most momentum traders lose money. Take a look:
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How to Find "Hot Stocks" with 2 Easy Scans

A couple years ago I uploaded an educational video for my Youtube channel subscribers that described how anyone can use a couple of simple scans for finding great trading setups. I demonstrated these scans using the free Finviz.com website ...

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3 Stocks to Consider for a Market Bounce

3 Stocks to Consider for a Market Bounce

Dr. Thomas Carr

Founder, CEO of DrStoxx.com

Founding Partner of The IXTHYS Letter™ and creator of The IXTHYS Plan™

CLICK HERE FOR MY LATEST REPORT: “4 Stocks to Own for the ...

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Where the Markets are Headed Now: Good News!

Please watch Dr. Carr (aka "Dr. Stoxx") give his take on last week's selloff, what will happen next, and when we should see what will be the BEST BUYING OPPORTUNITY FOR STOCKS all year!

CLICK HERE TO WATCH

Blessings ...

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TSLA, SCTY, SCRL and When to Buy the Dips

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Hear Dr. Carr teach techniques for knowing when to buy the dip in your favorite stocks. He looks at Tesla (Nasdaq: TSLA), Solarcity ...

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The S&P500: Where's It Going From Here?

The following video analysis is for educational purposes only. All financial analysis presented here is proprietary. Please do you own due diligence.

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Buy Tesla Today!

Why Buy Tesla Today?

Dr. Thomas K. Carr

Founder, DrStoxx.com and IXTHYS (coming soon)

GET MY FREE REPORT, "3 Keys to Momentum Stock Profits"

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Last night Tesla Motors (Nasdaq: TSLA) posted earnings that beat street ...

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Why You Should Read a Company's Mission Statement

This article is from an ongoing series: The 6 Keys to Building a Winning Portfolio of Stocks – Part 4 of 6

“Company Mission and Values”

By Dr. Thomas K Carr

The following article is adapted from Dr. Carr’s forthcoming ...

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The Keys to Building a Winning Portfolio - part III

The following article is adapted from Dr. Carr’s forthcoming new book, Stop Trading, Start Investing: the 6 Keys to Building a Winning Long-Term Portfolio. If you want to be alerted when the book is ready for purchase, click here ...

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Big News for our Celgene Calls! Huge Spike In After-hours!

US biotech company Celgene announced after the bell today that it is buying competitor, Receptos (RCPT), for a cool $7.3 billion, or $232 per share. This purchase will add $6.5 billion to Celegene's market cap, and while ...

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The 3 Keys to Successful Momentum Trading

If you want your own copy of this free report, along with details for all 3 keys, click here: Get My FREE Report

What is a Momentum Stock?

A momentum stocks is defined as a stock whose share price is ...

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Kornit Digital (Nasdaq: KRNT): Great IPO Growth Play

I am watching $KRNT for a move above $15, an area of resistance that the current price action has been coiling under. Company fundamentals for this Israeli IPO in the 3D printing space support the move.

Kornit is a profitable ...

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