Momentum Investing

Hello you very wonderful and intelligent people that make up this forum. I sincerely hope you are doing well and you are happy.

I have been reading alot of books and did a course on Momentum Trading / Investing, which looks for certain trends or popular sectors in the market. I kindly wondered please if anyone has the process or checklist they use for doing this. For instance do they use a stock screener for looking at stocks or an industry that is reaching an all time high, then put these stocks on a watchlist and analyse the technical aspects further please? I am just trying to fit together my own processes and procedures for applying the knowledge on this and what would be the best way to do this please? A bit like a checklist that i will do the same tasks each time when i am Momentum Trading, that i will follow strictly.

If anyone kindly could help with this it would mean the world to me and i would be forever grateful for any support you can give. Sending you lots of good wishes and i very much hope you have a wonderful and amazing life. All the best.

A quick and easy way to achieve this is to buy momentum factor ETFs like the ones below:

Looking at the charts in the reference I see nothing to like, over the past months. What am I missing?

Yeah. I’m not a big believer in momentum investing. Those ETFs have underperformed the MSCI World over five years. The only ‘factors’ I’d consider overweighting would be quality and value.

For me pure momentum investing have no sense, but it may be good as one of the filters to pick stocks. I would preffer to analyse financials, forecasts and valuations of the most rising stocks to look if they fave fundamentals for momentum growth and are not a bubble.