Trading momentum stocks
Yes, many of us do it. Even though it seems like it’s not a good time to use this strategy now, there are always sectors of the market with strong momentum. Our task is to find them. eg. the energy sector esp. oil has been going up for weeks. Our ASX may not have many oil companies (WDS, STO, ETFs – OOO, FUEL) but there’s plenty in the US markets.
Look for big bases and their subsequent break-outs. If you miss the initial break-out wait for the 1st pull-back.
You can trade price movement (momentum) in any timeframe, weekly, daily and even hourly.
Plan your trades, then trade your plan.
