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Momentum Day Trading

Momentum Day Trading is a method of stock trading, where in a trade is made, when the stock is making a trending movement and the trade is closed at the end of the day.

All stock will have increased momentum, that is change in price, now and then, reacting to news and announcements, crisis, political changes, natural events, opportunities and threats.This is an intra day trade lasting for a few minutes or a few hours.

By technical analysis of charts patterns and study of indicators, one can enter the trade in the early phase of the momentum. Exit the trade at the target price or when the momentum declines.

Since they move fast, you have to train yourself to habitually make fast and right decision. Certainly it is not for beginners.

There are instances where a trade is complete, that is trade entry and profit booking are over in less than a minute.



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