Momentum Investing

⚖ Active trading
1

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.

2

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

3

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

4

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.

5

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.